Lagos, Nigeria, July 29, 2010—IFC,
a member of the World Bank Group, is increasing support to major financial
institutions in Nigeria as part of a broader strategy to strengthen the
country’s banks in the aftermath of the global financial crisis.
Underscoring this commitment, IFC Vice President for Global Industries
Jyrki Koskelo announced new agreements with Guaranty Trust Bank and First
Bank of Nigeria, expected to be the first in a series of transactions supporting
IFC is providing $200 million in long term funding to GTB, subject to GTB
board and shareholder approval and$100 million in convertible sub-debt
and senior loans to FBN with participation from IFC Asset Management Company
in the equity-based financing.
“IFC is stepping up its support for the financial sector in Nigeria to
help local banks grow more and contribute to private sector development,”
said Koskelo. “In the wake of a crisis, Nigeria has made significant progress
toward creating a policy environment in which good banks can thrive. This
is the right moment for IFC and private investors to work with banks best
positioned to realize growth profitably.”
IFC is committed to partnerships in Nigeria that help encourage a growing
banking sector through a coordinated crisis response. IFC’s financial
sector strategy includes:
- Providing long-term financing to help
well-managed systemic banks, such as GTB and FBN, to achieve growth objectives
within the constraints of the banking crisis, improving their reach to
underserved segments such as infrastructure and smaller businesses.
- Helping partner banks improve corporate
governance, risk management, and develop robust environmental and social
- Supporting the Central Bank’s initiatives
to strengthen the banking sector
Koskelo’s itinerary in Nigeria includes meetings that also encourage IFC
activities in other sectors He participated in an infrastructure roundtable
and is scheduled to meet with Minister of Finance Segun Aganga and Central
Bank Governor Sanusi Lamido Sanusui on Tuesday.
IFC in Nigeria
IFC’s strategy in Nigeria focuses on proactively increasing investments
and advisory services to promote the real sectors of the economy, with
a focus on infrastructure and agribusiness, supporting financial sector
reforms and helping increasing access to finance by providing new products
and services to banks, and increasing advisory services to help improve
the country’s overall investment climate.
Nigeria is IFC’s second-largest portfolio in Africa, after South Africa.
In the fiscal year ended June 2010, IFC committed $704 million in Nigeria.
Since its first investment in Nigeria in 1964 and as of June 30, 2009,
IFC has committed financing to more than 70 projects in Nigeria, amounting
to $3billion. For more information, visit www.ifc.org/africa.
IFC, a member of the World Bank Group is the largest development institution
focused on the private sector in developing countries. We create opportunity
for people to escape poverty and improve their lives—by providing financing
to help businesses employ more people and provide essential services, mobilizing
capital from others, and delivering advisory and risk-management services
to ensure sustainable development. In a time of global economic uncertainty,
our new investments climbed to a record $18 billion in fiscal 2010. For
more information, visit www.ifc.org.
About IFC Asset Management Company
IFC Asset Management Company LLC, a wholly-owned subsidiary of IFC, invests
third-party capital, enabling outside investors to benefit from IFC’s
expertise in achieving strong equity returns as well as positive development
impact in the countries in which it invests. It manages the $3 billion
IFC Capitalization Fund as well as the IFC African, Latin American, and