Ecobank Transnational Incorporated and IFC, a member of the World Bank Group, today announced that they are joining forces to strengthen Africa's banking sector and increase lending to small and medium enterprises that have difficulty accessing credit.
IFC will provide a financing package of up to $213 million to Ecobank, consisting of a $100 million convertible loan to support the bank's regional expansion, a $25 million loan and advisory services to Ecobank Nigeria to promote lending to smaller businesses and up to $88 million in guarantees against the underlying trade transactions of several Ecobank subsidiaries - including those in Benin, Burkina Faso, Côte d'Ivoire, Mali, Niger, Nigeria, Senegal and Togo.
IFC also plans to work with Ecobank to increase financing for critical sectors, including agribusiness, education, health, housing and infrastructure.
"In the past three years we have strengthened our network and operations across Africa, which has allowed us to reach a larger number of people more efficiently and increase our regional impact," said Arnold Ekpe, Ecobank's CEO. "Working with IFC will enable us to reach even more regions and contribute more directly to economic development."
"Improving access to finance and building strong financial markets is a key focus of IFC's strategy to strengthen the private sector in Sub-Saharan Africa," said Yolande Duhem, IFC Director for West and Central Africa. "Working with Ecobank's extensive network will enable us to have a greater development impact in the region."
Ecobank has collaborated with IFC on many projects over the past 15 years. In 2007, IFC provided $40 million in funding to Ecobank Ghana.
About ECOBANK (www.ecobank.com)
Incorporated in 1985, ECOBANK Transnational Incorporated (ETI) is the parent company of the leading independent regional banking group in Africa. The ECOBANK Group currently operates in 25 African countries, namely: Benin, Burkina-Faso, Burundi, Cameroon, Cape Verde, Central African Republic, Chad, Congo-Brazzaville, Côte d'Ivoire, Democratic Republic of Congo, Gambia, Ghana, Guinea, Guinea-Bissau, Kenya, Liberia, Malawi, Mali, Niger, Nigeria, Rwanda, Sao Tome and Principe, Senegal, Sierra Leone, and Togo. In addition, ETI is listed on the stock exchanges in Lagos, Accra and Abidjan (BRVM). The Group is owned by over 7000 shareholders including institutional investors. The Group has over 10,000 employees in over 500 branches. ECOBANK is a full-service bank providing wholesale, retail, investment and transaction banking services and products to governments, financial institutions, multinationals, international organizations, medium, small and micro businesses and individuals.
For more information, contact:
Group Communications
Ecobank Transnational Incorporated
2, Sylvanus Olympio Avenue
Lomé, Togo
Tel: 228 221 03 03
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, visit www.ifc.org.
