The International Finance Corp. is injecting USD300 million into two Nigerian financial institutions as part of a new multi-step effort to boost the country’s banking sector.
IFC has agreed to offer USD200 million in long-term funding to Guaranty Trust Bank and USD100 million in convertible sub-debt and senior loans to First Bank of Nigeria, This Day reports. The investments are subject to approval by the banks’ boards and shareholders.
Nine banks will eventually benefit from IFC’s help, including United Bank for Africa, Ecobank Nigeria, Access Bank, First City Monument Bank, Diamond Bank, Zenith Bank and Stanbic IBTC Bank.
Nigeria holds IFC’s second largest portfolio in Africa, after South Africa. IFC committed USD704 for Nigeria in fiscal 2010.