Nigerian lender, FCMB Plc, has announced that it obtained a $50 million credit facility from the International Finance Corporation (IFC), a member of the World Bank Group, to help support businesses that have been affected by the coronavirus pandemic.
The fund is to help the financial institution expand lending to small and medium enterprises (SMEs) so they can sustain business activities and support hundreds of businesses with trade financing and working capital loans.
This was disclosed in a press release by the IFC.
The fund is from an $8 billion global COVID-19 fast track facility which was launched in March by the World Bank’s private-lending arm, the International Finance Corporation, to support existing clients through direct lending to companies affected by the impact of COVID-19.
According to the press release, “IFC, a member of the World Bank Group, today announced a $50 million loan to Nigeria’s First City Monument Bank (FCMB) Limited to help it expand lending to small and medium enterprises (SMEs) so they can sustain business activities disrupted by the COVID-19 pandemic.
The loan, made through IFC’s COVID-19 fast-track financing support package, reflects IFC’s commitment to Nigeria’s private sector following the severe challenges brought by the health and economic crisis. The funds will allow FCMB to support hundreds of businesses with trade financing and working capital loans.”
The IFC Country Manager, Eme Essien Lore, said that supporting financial institutions like FCMB is vital to keeping smaller businesses solvent, saving jobs, and limiting economic damage in the face of challenges posed by the coronavirus disease.
On his own part, the FCMB CEO, Adam Nuru, said the credit facility from IFC allowed the bank to keep credit flowing to SMEs and corporate companies across all sectors of the Nigerian economy.