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Stanbic IBTC Secures Facility for SME, Energy Financing

July 3, 2014

Stanbic IBTC Bank said it has received a $100 million Line of Credit (LOC) from the African Development Bank (AfDB) for on-lending to small and medium scale enterprises (SMEs) operating in various sectors in the Nigerian economy.

Part of the fund would also be applied to the financing of renewable energy and energy efficiency projects in Nigeria, in line with the requirements of the Clean Technology Fund (CTF).

According to a statement from the bank, of the total amount, $75 million would be utilised in funding SME projects in the country while $25 million will be used for the funding of renewable energy and energy efficiency projects.

Stanbic IBTC Bank is the first Nigerian bank to receive CTF's approval, it stated.

The Chief Executive of Stanbic IBTC Bank, Mr. Yinka Sanni while speaking on the fund, stated that the bank would continue to partner with reputable institutions to create avenues for growth and development of the Nigerian economy.

"We will continue to explore various channels of credit to empower small and medium-sized businesses. We recognise that the SME and energy sectors form an integral part of the Nigerian economy as a whole.

> "As a result, we will remain at the forefront to empower our clients and help them achieve their business goals," Sanni said.

He appreciated the trust bestowed on the bank by the AfDB in granting the facility.

The $100 million LOC to Stanbic IBTC Bank was approved by AfDB's board of directors on Wednesday, 26 March 2014 and April 13th 2014 in Tunis. In approving the LOC, the board of directors emphasised that the SME sector represents a strategic pillar for Nigeria's quest to modernise and improve its economy.

The AfDB highlighted financial inclusion as part of CBN's drive to diversify the Nigerian economy.

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Source: AllAfrica

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