IFC provides $70m convertible loans for Nigeria’s Diamond Bank

The International Finance Corporation (IFC) and the Africa Capitalization Fund, a private equity fund managed by the IFC Asset Management Company announced August 8, 2012 that they will together provide $70 million in convertible loans to Diamond Bank of Nigeria.

According to the IFC, the financing will support growth and access to finance for smaller businesses in Nigeria 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 lender said in a statement.

“Our strategy in Nigeria is to support banks in reaching smaller businesses, which form the backbone of the economy,” said Solomon Adegbie-Quaynor, IFC Nigeria Country Manager.

“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.

Chief Executive Officer (CEO) of the Diamond Bank, Alex Otti believes the IFC investment will help the bank “better serve our clients in Nigeria’s micro, small, and medium enterprises and agribusiness sector. It also will strengthen our capital base, supporting our growth.”

By Ekow Quandzie