Nigeria's foremost financialinstitution, First Bank of Nigeria Plc (FirstBank) and its investment banking subsidiary, FBN Capital Limited, have signed a Memorandum of Understanding MoU with Oyo State government to fund some key developmental and economically viable projects in the state.The agreement, consummated in Ibadan covers areas such as independent power project, transportation, agriculture, and motor assembly plant which Bisi Onasanya, FirstBank Managing Director / Chief Executive Officer described the partnership as historic.Oyo State governor, Abiola Ajibola, said that when completed, the various projects would firmly position the state as economic and industrial powerhouse.It was agreed that the state government will make available the necessary resources including the enabling environment and political will, FirstBank will provide the financial resources, singly or together with a syndicate of lenders, as well as act as the Receiving Bank for the sum that will be utilised for the development of the project dubbed 'OYO Project.'The partners agreed that FBN Capital Limited will evaluate individual projects that will constitute the entire portfolio based on four-pronged criteria viz: commercially viable projects that can 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.In addition, FBN Capital shall also leverage on its professional expertise to provide advisory services to the state government, as well as source alternative funding models through multilateral agencies, development financial institutions and also serve as lead arranger for club funding as may be required for the development of the project.Speaking to government house correspondents after the signing ceremony, FirstBank's Executive Director, Public Sector South, Mr Uruem Kalu Eke, said FirsBank's partnership with the state was in sync 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. He said the FirstBank group was bringing to the 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 the Nigeria can achieve sustainable economic growth'Some of the projects identified for execution include rice and grain cultivation, resuscitation and establishment of existing and new farm settlements, establishment of vehicle assembly plant, purchase of mass transit vehicles, building of independent power project and establishment of a transformer factory.
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