FirstBank seals project financing pact with Oyo

FIRSTBANK of Nigeria Plc and its investment-banking subsidiary, FBN Capital Limited at the weekend, signed a Memorandum of Understanding (MoU) with the Oyo State Government to fund some key developmental and economically viable projects in the state.The agreement, which was signed at the Agodi Government House covers areas such as independent power project, transportation, agriculture and motor assembly plant.The Managing Director of the financial institution, Bisi Onasanya, described the partnership as historic, while Governor Abiola Ajimobi said that the various projects would firmly position the state as economic and industrial powerhouse when completed.In the said agreement, the state government will make available the necessary resources including the enabling environment and political will, while the FirstBank will provide the financial resources, singly or together with a syndicate of lenders as well as act as receiving bank for the sum that will be utilised for the development of the project.The partners agreed that FBN Capital Limited would evaluate individual projects that constituted the entire portfolio based on four-pronged criteria; namely, commercially viable projects that could be funded, commercially viable projects requiring government support, commercially unviable projects but socially important and commercially viable projects requiring no funding by FirstBank and Oyo State Government.Besides, FBN Capital is expected to provide advisory services to the state government as well as source alternative funding models through multilateral agencies and development financial institutions.In an interview with reporters after the signing ceremony, the Executive Director (Public Sector) of the financial institution, Mr. Uruem Eke said that the financial institution's partnership with the state was in line with its corporate strategic intent to support government economic initiatives at all levels with a view to contributing to the socio-economic development of the country and better the lives of Nigerians.Eke assured that the FirstBank group was bringing to table its tested expertise in infrastructure financing and project advisory credentials.'We have done this successfully in other states, and we are confident that this project will not be different. We have the expertise, we have the financial strength, and we have the will to see through the various projects. We believe this is the best way Nigeria can achieve sustainable economic growth.
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