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IFC and GTB Help Boost Access to Long-Term Finance in Nigeria


In Washington:
Corrie Shanahan

Phone: +1(202) 473 2258

Email:
cshanahan@ifc.org

In Lagos

Andrew Alli

Phone: +234 (1) 262 6467

Fax:     +234 (1) 262 6465

Email:
aalli@ifc.org


Washington, D.C. /Lagos, May 16, 2005—The International Finance Corporation, the private sector arm of the World Bank Group, today signed an agreement to provide a seven-year revolving loan of up to $20 million to Guaranty Trust Bank, one of Nigeria’s largest and most successful banks. This third loan to Guaranty Trust raises IFC’s total investment in the bank to more than $50 million. The bank will use IFC’s loan to increase long-term financing of local private investment projects.

Jyrki Koskelo, Director of IFC’s Global Financial Markets department, said, "IFC’s provision of a third loan to Guaranty Trust Bank is a signal of the Corporation’s confidence in the bank and in the Nigerian financial sector. We will be working with our clients to support them as they face the challenging post-consolidation period ahead.”


Richard Ranken, Director of IFC’s Sub-Saharan Africa department, noted, "This investment strengthens the relationship between the two institutions at a critical stage in the development of the Nigerian financial sector, and it consolidates our partnership in advance of a new era for the Nigerian banking sector. Guaranty Trust Bank has played a critical role in developing excellence in banking services in Nigeria, and we are confident it can play the same role in taking the sector to the next level, not only in Nigeria, but also in other Western African countries where it operates.”


Tayo Aderinokun, Chief Executive Officer and Managing Director of Guaranty Trust, remarked, "We are extremely pleased with our successful partnership with IFC. We welcome IFC’s new investment in the bank, which comes at an important time in our development. It demonstrates IFC’s support for our institution as it enters the next phase of its development.”


Guaranty Trust Bank is a leading new generation Nigerian bank. As of February 2005, it had total assets over $1 billion equivalent and capital of over $260 million equivalent.


The mission of IFC (
www.ifc.org) is to promote sustainable private sector investment in transition economies, helping to reduce poverty and improve people's lives. IFC finances private sector investments in the emerging markets, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY04, IFC has committed more than $44 billion of its own funds and arranged $23 billion in syndications for 3,143 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY04 was $17.9 billion for its own account and $5.5 billion held for participants in loan syndications.