On Tuesday, 16th June, the IFC (International Finance Corporation) announced the approval of a $100 million loan to Zenith Bank Plc Nigeria.
According to the press release on the IFC website seen by Investogist, the IFC, a member of the World Bank Group says that the investment is to help increase the Bank’s support to clients and companies whose cash flows have been disrupted by challenges caused by the COVID-19 pandemic.
Reacting to the loan approval, Ebenezer Onyeagwu, Group Managing Director/CEO of Zenith Bank, said, “IFC’s support is essential and will help us respond to challenges resulting from the COVID-19 pandemic. It will allow us to support compelling export initiatives and trade financing for critical goods and materials, especially for the medical and pharmaceuticals sectors. Our partnership with IFC is strong and we are committed to its environmental, social, and governance (ESG) requirements.”
It is expected that with the loan, Zenith Bank Plc will support dozens of businesses in Nigeria’s health, pharmaceuticals, food, and trading sectors, allowing them to strengthen operations, maintain employment, and access critical imports of goods, commodities, and raw materials during these challenging economic times.
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Eme Essien Lore, IFC Country Manager in Nigeria, said, “IFC’s support for Nigeria’s banking sector will help keep the wheels of Nigeria’s economy turning at a time when it is facing a major challenge from COVID-19. Our experience from past shocks, including the global financial crisis in 2008, has taught us that keeping companies solvent is key to saving jobs and limiting economic damage.”
Zenith became the IFC client to benefit from the IFC’s COVID-19 fast-track financing support package.
On March 17, IFC’s Board approved $8 billion in fast-track financing to help companies affected by the outbreak. According to the press release, this is part of the World Bank Group’s $14 billion fast-track financing package.
With the financing, which is Phase 1 of IFC’s COVID-19 response, IFC will provide direct lending to existing clients affected by the outbreak, as well as support to financial institution partner clients so they can continue lending to businesses.
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IFC’s fast-track financing had been made available to existing IFC clients who could demonstrate a clear impact on their business due to the COVID-19 pandemic. Among other criteria, the clients must be in good standing with IFC and compliant with environmental, social, and governance (ESG) requirements.
There has been significant interest for the $8 billion facility by nearly 300 IFC clients across all regions and diverse sectors (e.g., financial, health and pharmaceuticals, agribusiness, services, infrastructure etc.).
To ensure that IFC continued its support for private-sector development in low income and fragile and conflict-affected countries, strong emphasis was placed on supporting clients operating in these countries.
Zenith Bank Plc is Nigeria’s largest bank by total equity and second-largest by asset size. The bank serves more than 9 million corporate and individual clients through its network of over 500 branches across Nigeria and its subsidiaries in the Gambia, Ghana, Sierra Leone and the United Kingdom. It also has a representative office in Beijing China, and Dubai (UAE) branch of Zenith Bank UK.
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IFC’s overall portfolio in Nigeria stands at $1.3 billion, in sectors including manufacturing, financial services, infrastructure, and technology.
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets.
Last month, Investogist published a series of articles on how to obtain financing from the International Finance Corporation.
Written by;
Nnamdi M.
