The International Finance Corporation (IFC) has agreed to provide Zenith Bank Plc a $100m loan facility to increase the bank’s lending to important economic sectors and facilitate economic growth and job creation in the country.
Zenith Bank said in a statement that the IFC, a member of the World Bank Group, signed the agreement on Tuesday.
According to the statement, the $100m loan facility will be provided from the IFC’s own account and Zenith Bank will use the facility to reduce the lending gap in critical sectors.
Specifically, it said the facility would help to reduce the infrastructure funding gap in the country, including the power sector, noting that the lack of infrastructure had been identified as a key impediment to the private sector development in Nigeria.
The Group Managing Director and Chief Executive Officer, Zenith Bank, Mr. Peter Amangbo, was quoted as saying, “As reputable leaders in the African banking industry with superior performance, Zenith Bank Plc will continue to explore business opportunities in strategic sectors that will bring the much-needed development to boost Nigeria’s economy.
“By partnering with the IFC, we hope to increase our lending activities and further strengthen our leadership position.”
The IFC Country Manager for Nigeria, Eme Lore, said, “The IFC is demonstrating its commitment to support the real sector in the country through financial intermediaries.
“As part of that effort, the IFC is working with Zenith Bank Plc to finance these critical sectors and contribute to the development of the economy, especially to create a sustainable source of infrastructure finance in Nigeria.”
Zenith Bank, with headquarters in Lagos, has more than 350 branches in Nigeria. The bank grew its shareholder’s funds of N20m in 1990 to N552.64bn at the end of 2013, according to the statement.
The IFC is the largest global development institution focusing exclusively on the private sector.
In 2014, it said it provided more than $22bn to improve lives in developing countries and tackle the most urgent challenges of development.
