IFC Grants FCMB US$50 million loan to Support SMEs
International Finance Corporation, IFC, a member of the World Bank Group, today announced a $50 million loan to Nigeria’s First City Monument Bank (FCMB) Limited.
The objective of the fund is to help expand lending to small and medium enterprises (SMEs) so they can sustain business activities disrupted by the COVID-19 pandemic.
IFC said the loan, made through its COVID-19 fast-track financing support package, reflects the corporation’s commitment to Nigeria’s private sector.
The financing package was designed following the severe challenges brought by the health and economic crisis.
“The funds will allow FCMB to support hundreds of businesses with trade financing and working capital loans”, IFC explained.
Commenting on the loan, FCMB’s Chief Executive, Adam Nuru, said, “IFC’s loan facility will allow us to keep credit flowing to SMEs as well as corporate companies across all sectors of Nigeria’s economy.
“These include the health, pharmaceutical, food and trading industries.”
Also, IFC’s Country Manager for Nigeria, Eme Essien Lore, said, “Supporting financial institutions like FCMB is vital to keeping smaller businesses solvent, saving jobs, and limiting economic damage in the face of a challenge as formidable as COVID-19.
“Although Nigeria has a strong and dynamic private sector, it needs liquidity now to ensure it remains viable during and after COVID-19.”
IFC’s $8 billion global COVID-19 fast track facility was launched in March 2020 to support existing clients through direct lending to affected companies.
Also to financial institutions so they can continue lending to their clients and help to preserve and create jobs.
With a network of 205 branches, FCMB serves more than 4.5 million customers in Nigeria.
IFC’s portfolio in the country stands at $1.3 billion in sectors including manufacturing, financial services, infrastructure and technology.
IFC Grants FCMB US$50 million Loan to Support SMEs written by Ogochi Ndubuisi.
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