Diamond Bank secures IFC's $70 million facility

THE International Finance Corporation (IFC), a member of the World Bank Group, and the Africa Capitalisation Fund, a private equity fund managed by IFC Asset Management Company, has sealed a pact with Diamond Bank Plc to provide $70 million (N11.3 billion) in convertible loans to the Nigerian financial institution.The financing deal is expected to support growth and access to finance for smaller businesses in the country by allowing Diamond Bank to expand its lending programme 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.The Group Managing Director and Chief Executive Officer, Alex Otti, said the investment will help the bank to better serve its clients in Nigeria's micro, small, and medium enterprises and agribusiness sector. 'It also will strengthen our capital base and support our growth.'IFC's Nigeria's Country Manager, Solomon Adegbie-Quaynor said the scheme would bolster access of small scalers to credit in the country and thereby promote entrepreneurship.'Our strategy in Nigeria is to support banks in reaching smaller businesses, which form the backbone of the economy. 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', Adegbie-Quaynor added.The Head of the Africa Capitalisation Fund, Marcos Brujis, 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 for investors.'IFC's partnership with Diamond Bank began in 2005, with an initial investment to help it expand lending to small and medium enterprises. It has however been working with the bank since 2001 in various areas, including providing long-term financing and advisory services to support its business.
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