Lagos, February 17, 2014—IFC, a
member of the World Bank Group, today announced that it has signed an agreement
to provide financing of NGN800 million, or approximately $5 million, to
AB Microfinance Bank. The IFC loan will increase access to finance for
micro, small and medium enterprises. These activities promote financial
inclusion, job creation and grow the Nigerian economy.
IFC provided an investment of a similar size
in 2008. The new investment will help AB Microfinance Bank build on its
demonstrated success in offering financial services to new market segments
and entrepreneurs serving the base of the economic pyramid. The activities
are critical for helping people with low-incomes engage in economic activity
to sustain livelihoods and gain access to basic goods and services.
Mattias Grammling, Managing Director, AB
Microfinance Bank, said, “Improving access to financial services for MSMEs
would hasten growth in the informal sector. Our partnership with IFC will
help soften bottle-necks on loan acquisitions and enable us provide growth
opportunities for MSMEs and lower income clients to foster job creation
and economic growth.”
Solomon Adegbie-Quaynor, IFC Country Manager
for Nigeria, said, “Supporting AB Microfinance Bank is consistent with
IFC’s core strategy to improve financial inclusion and contribute to economic
growth. IFC’s investment will provide term funding in naira to make local
currency more readily available from AB Microfinance to entrepreneurs.
This loan will increase access to finance and empower entrepreneurs and
micro-businesses, whose credit needs are today primarily met outside the
formal banking sector.”
AB Microfinance Bank started operations in
2008 and is one of the fastest growing microfinance banks in Nigeria. It
offers entrepreneurs the opportunity to access loans in a transparent and
efficient environment. This loan will provide AB Microfinance Bank with
long-term financing not commonly available to microfinance institutions
in the Nigerian market, and will allow it grow its loan portfolio to address
financial inclusion challenges for MSMEs in Nigeria.
IFC aims to promote financial sector diversification
through new products. These include trade finance, housing finance, insurance,
small and medium enterprise finance, and increased power generation and
distribution. As part of the World Bank Group strategy, IFC also seeks
to develop local fixed income capital markets using various instruments
and credit bureaus that support Nigerian growth beyond the oil sector.
IFC, a member of the World Bank Group, is
the largest global development institution focused exclusively on the private
sector. Working with private enterprises in more than 100 countries, we
use our capital, expertise, and influence to help eliminate extreme poverty
and promote shared prosperity. In FY13, our investments climbed to an all-time
high of nearly $25 billion, leveraging the power of the private sector
to create jobs and tackle the world’s most pressing development challenges.
For more information, visit www.ifc.org