Lagos, August 8, 2012—IFC, a member
of the World Bank Group, and the Africa Capitalization Fund, a private
equity fund managed by IFC Asset Management Company, a wholly owned subsidiary
of IFC, announced today that they will together provide $70 million in
convertible loans to Diamond Bank. The financing will support growth and
access to finance for smaller businesses in Nigeria by allowing Diamond
Bank to expand its lending program and ability to offer financial services
to underserved market segments, including micro, small, and medium enterprises
and agricultural firms.
IFC Advisory Services will provide further assistance to help Diamond Bank
enhance its range of financial services for agricultural sector clients.
Alex Otti, CEO of Diamond Bank, said, “This investment will help Diamond
Bank better serve our clients in Nigeria’s micro, small, and medium enterprises
and agribusiness sector. It also will strengthen our capital base, supporting
“Our strategy in Nigeria is to support banks in reaching smaller businesses,
which form the backbone of the economy,” said Solomon Adegbie-Quaynor,
IFC Nigeria Country Manager. “By working with a long-term partner like
Diamond Bank we can increase access to finance for those critical sectors,
supporting sustainable economic growth and job creation.”
Marcos Brujis, Head of the Africa Capitalization Fund, said, “The investment
provides a unique opportunity for the Africa Capitalization Fund to support
Diamond Bank’s expansion into key economic sectors that have relatively
low banking penetration and, therefore, offer significant growth potential
Diamond Bank is a leading bank in Nigeria, with over 200 branches around
the country. IFC’s partnership with Diamond Bank began in 2005, with an
initial investment to help it expand lending to small and medium enterprises.
IFC has worked with Diamond Bank since 2001 in various areas, including
providing long-term financing and advisory services to support its business.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. We help developing
countries achieve sustainable growth by financing investment, mobilizing
capital in international financial markets, and providing advisory services
to businesses and governments. In FY12, our investments reached an all-time
high of more than $20 billion, leveraging the power of the private sector
to create jobs, spark innovation, and tackle the world’s most pressing
development challenges. 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 over $4 billion
of capital across four investment funds, including the Africa Capitalization
Fund, whose investors are Abu Dhabi Fund for Development, African Development
Bank, CDC Group plc, European Investment Bank, OPEC Fund for International
Development and Sumitomo Mitsui Banking Corporation.