Swedfund invests MUSD 10 in the Nigerian Ecobank through a subordinated term loan. The investment is made in conjunction with, among others, the Dutch development bank FMO and is an important contribution to the development of the country’s private sector.
STOCKHOLM, 29-10-2015 — /EuropaWire/ — Ecobank is a full-service commercial bank with a large and competitive capacity in retail banking. The bank is one of the 8 systemically important banks in Nigeria. It currently has the 2nd largest branch network in the Nigerian banking industry. In addition to its Corporate Bank business, Ecobank focuses on local corporates and Small and Medium Enterprises (SME), thereby supporting and creating jobs in the Nigerian economy.
The 7-year subordinated syndicated loan providing Tier II capital to Ecobank Nigeria will have a strong multiplier effect on the growth of Ecobank’s loan portfolio and enable much needed private sector development in the largest economy of Sub-Saharan Africa.
“As a development finance institution we have an important role to fill in supporting the development of the financial sector in emerging countries, which through its lending activities to SMEs enables investments in the private sector. The facility to Ecobank will support to the banks continued growth and financing of commercial customers which generate job opportunities in their businesses,” said Swedfund’s MD Anna Ryott.
Swedfunds loan is a part of a syndicated loan led by the Dutch development bank FMO. FMO invests MUSD 30, the German Development Finance Institution, DEG, MUSD 20 and Amethis Africa Finance Ltd MUSD15.
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SOURCE: Swedfund International AB