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IFC extends additional $20m credit line to Diamond Bank

Posted by By Yinka Kolawole on 2005/12/27 | Views: 1142 |

IFC extends additional $20m credit line to Diamond Bank

The International Finance Corporation has signed an additional credit line agreement with Diamond Bank Plc to provide a seven-year loan of up to $20 million.

The International Finance Corporation has signed an additional credit line agreement with Diamond Bank Plc to provide a seven-year loan of up to $20 million. This additional loan raises IFC’s total exposure to Diamond Bank to $70 million. The credit line will enable the bank finance eligible projects by extending sub-loans to local private investment clients.

Only three months ago, Diamond Bank was the beneficiary of a $20 million credit line under the $500 million Global Trade Finance Program (GTFP) rolled-out recently by the IFC. The Global Trade Finance Programme supports trade with emerging markets worldwide by promoting flows of goods and services between developing countries.

IFC provides guarantee coverage of bank risk in emerging markets, allowing recipients to expand their trade finance transactions within an extensive network of countries and banks and to enhance their trade finance coverage.

The Bank was the first African bank to utilise the GTFP facility and has since maintained the most impressive utilisation.

Chairman/Chief Executive Officer of the bank, Mr. Pascal Dozie, described IFC’s support toward Nigeria’s fledging economy as unrivaled. “As before, the additional loan to Diamond Bank is a welcome development which will increase our capacity to play a major role in the Nigerian enterprise. We are determined to take advantage of our relationship with IFC to strengthen our core business in the corporate and commercial segments to the satisfaction of all stakeholders,” Dozie said.

IFC’s Director for Global Financial Markets, Jyrki Koskelo, said: “IFC’s second loan to Diamond Bank is a signal of our confidence in this firm and in Nigeria’’s financial sector. Diamond Bank has played an important role in expanding banking services in Nigeria, and we are confident it can continue this role going forward.” Richard Ranken, Director of IFC’s Sub-Saharan Africa Department, noted, “This investment is a testament to our successful relationship with Diamond Bank. It consolidates our partnership in anticipation of a new era for Nigeria’s banking sector.”

Diamond Bank has continued to display its capacity to attract investments from international finance and trade organisations. Since 1999, the bank has provided the conduit for key financial resource flows into the country. These include: The Netherlands Development Corporation (FMO); The Commodity Credit Corporation (CCC) of the United States Department of Commerce; The U.S. Eximbank; Manager of a $30 million revolving facility arranged by Delta Business Development Limited, (a subsidiary of Shell International, IFC and Diamond Bank PLC for On-lending to local Niger-Delta contractors providing services to Shell Petroleum Development Company; and 1.37 million global on-lending facility from the European Investment Bank (EIB) disbursed to Top-Tree Industries based in Aba, Nigeria.

The bank also recently established a working partnership with SINOSURE, the China Export-Credit Insurance Corporation. The two organisations signed a Memorandum of Understanding (MOU) earlier this year to facilitate co-operation between Nigerian businesses and their Chinese counterparts in the areas of trade and investment flows.
Diamond Bank is one of the banks to have fulfilled the Central Bank of Nigeria’’s minimum capital requirement with shareholders funds in excess of N28 billion.

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Comments (3)

Abieyuwa(Edo, Nigeria)says...

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Naija g(Houston, Minnesota, US)says...

Sokari doesn’t mean joy. Joy is Biobela. Go to the village and ask the meaning of the name.

Fay(Katy, Texas, US)says...

Actually translates to bravehearted.