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FCMB secures a $20 million Loan Deal to Boost SMEs

By on October 30, 2012

SME wealth

In a bid to support its Small and Medium Enterprises (SMEs) customers, FCMB has secured a three-year term loan from Citigroup Global Markets Limited (Citi).

 

According to a statement from Citibank Nigeria, which was issued on Monday the facility was supported through a partial guarantee from the Overseas Private Investment Corporation (OPIC). The lending will be channelled only for identified SME customers of FCMB.

 

It further described the deal as a “pioneering OPIC SME Loan Guaranty Facility in Nigeria and will provide significant employment opportunities within the SME sector of the economy.”

 

The Group Managing Director/Chief Executive Officer of FCMB, Mr. Ladi Balogun, described the transaction as an innovative collaboration between Citi and FCMB.

He said, “By implication of the size of the loan, we will be deploying it towards the SME segment of our customer base. Most importantly, this is an indication of the growing confidence the international community has in the Nigerian financial sector following the reforms initiated by the Central Bank of Nigeria.”

 

“No doubt the sector’s risk rating and the country’s sovereign rating will continue to improve to the benefit of the financial sector and the economy at large. We will be applying these funds towards our underserved SMEs.”

 

“This underserved sector, is absolutely critical to growth and employment in our economy, will benefit from greater access to competitively priced funds such as this. FCMB is pleased not only to have received these funds but also to continue its supportive role in the growth and development of SMEs in Nigeria,” he added.

 

Similarly, the Executive Director/ Corporate Bank Head for Citi Nigeria, Omar Hafeez, said Citi’s singular focus  is delivering client solutions, which was demonstrated in the structure of the deal.

He said the deal will help FCMB in two ways, first, diversify, and strengthen its funding base and directly impact on the Nigerian economy.

 

The outgoing Managing Director of Citi Bank, Mr. Emeka Emuwa, who was also present at the event, highly praised the entire team on a successful outcome and reflected on Citi’s long-standing relationship with FCMB.