Stanbic IBTC to receive $75m funding to support key growth sectors of the economy
By Modupe Shodeinde
The Stanbic IBTC Bank PLC, a subsidiary of Stanbic IBTC Holdings Plc, is set to receive a $75m debt commitment from the CDC Group, UK’s development finance institution and impact investor.
This long-term funding is aimed at ensuring the continuance of lending to businesses in the subsectors of the economy important for domestic consumption and exports including food, manufacturing, telecommunications and construction.
In a statement, the CDC said the debt commitment will also give Stanbic IBTC access to long-term dollar funding which would enable the bank to lend to exporting and other dollar-earning businesses in Nigeria.
According to the Head of CDC Nigeria Office and Coverage Director, Benson Adenuga, this debt facility is to support key growth sectors of the economy and Nigerian businesses in crucial sub-sectors such as food and agriculture.
“This deal cements our relationships with Stanbic IBTC and Standard Bank Group, both key partners in Nigeria and across the continent. Our patient capital plays an important role in unlocking dollar funding, which is vital to finance longer-term investment projects in Nigeria.” he said
Adenuga commenting on the institution’s investment history in Nigeria, stated that CDC had been investing in Nigeria for over 70 years, and has partnered with nearly 100 companies in the country.
He added that the CDC will continue to prioritise Nigeria as a key investment region.
According to the statement, the funding comes at a critical time because of the current economic downturn caused by the Covid-19 pandemic.
It stated that the subsectors targeted by the facility “employ large numbers of local staff and support substantial SME supply chain”.
The Chief Executive, Stanbic IBTC Bank Plc, Wole Adeniyi, said the partnership with CDC would strengthen the bank’s commitment to support Nigerian businesses amid the current situation.
He said that providing finance to local businesses is necessary to cushion the adverse effects of the pandemic on Nigeria’s economy and also accelerate long term economic recovery.
CDC Group Plc (formerly the Commonwealth Development Corporation, and previous to that, the Colonial Development Corporation) is a development finance institution owned by the UK government.
