Business
IFC Invests N450m In AB Micro Finance Bank
International Finance Corporation (IFC), a member of the World Bank Group, has invested a sum of N450 million in AB Micro finance Bank Nigeria. IFC said this would enable AB MFB increase lending to micro enterprises and low-income entrepreneurs in Nigeria.
The Five-tier loan was IFC’s follow-up investment in AB Micro finance Bank, after the N150 million it contributed to help launch the institution in October 2008. The fund which is the first IFC’s loan to the micro finance sector that is dominated in naira, will enable the micro-credit institution to provide finance for Nigerians with skills entrepreneurs and with limited access to high quality and reliable financial services.
Reacting to the development, Mr. Michael Barleon, Managing Director, AB Microfinance Bank said, the deepening partnership between IFC and his bank will enable it continue to increase support for entrepreneurs and small businesses in Nigeria.
To him, “AB Micro finance Bank is committed to working with partners such as IFC to help create employment opportunities and improve the livelihoods of Nigerians.
IFC said the loan will be structured using the naira/$ swap market, thus helping increase the market’s liquidity and depth. It added that by borrowing in naira, AB MFB is eliminating its Foreign exchange risk on the loan and gaining the capability of offering long term naira products to its customers.
Yolande Duhem, IFC Director for Western and Central Africa said, the recent turmoil in global and Nigerian Financial markets has made it difficult for many financial institutions to raise the capital they need to finance their lending and operations.
IFC, he said is committed to supporting commercial to viable microfinance institutions such as AB Microfinance to help create a sustainable financial architecture that can provide financial services to people that need them the most. IFC’s micro finance strategy for Africa aims to increase access to finance in the poorest areas through commercially viable microfinance institutions.