By Dipo Olowookere
A syndicated loan facility worth $200 million has been secured for Ecobank Transnational Incorporated (ETI) by the Dutch development bank (FMO), Business Post has learnt.
The loan would be used by Ecobank to fund a number of subsidiaries across its network of 36 African countries, the bank said on Monday.
The $200 million 5-7 year syndicated debt facility is the second syndicated loan facility for the Ecobank Group arranged by FMO in recent years.
In line with the Ecobank Group’s strategic development objectives, at least 75 percent of the loan facility will be directed to SME’s across various sectors of the economy.
FMO arranged the syndication and kept a stake of $58.5 million for its own account with other DFIs and impact investors providing contributions as follows: DEG–Deutsche Investitionsund Entwicklungsgesellschaft mbH (€21 million), Proparco (€21 million), Belgian Investment Company for Developing Countries-BIO ($15 million), Development Bank of Austria-OeEB ($15 million), Blue Orchard ($30 million), Symbiotics ($21.5 million) and Oikocredit ($10 million).
Commenting on the loan facility, Ecobank Group CEO, mr Ade Ayeyemi, said, “ETI is pleased to conclude this financing arrangement with FMO, who have been able to bring a significant number of players to the financing table.
“The transaction will greatly enhance our capacity to serve our SME clients, who continue to be a very important market segment for us.”
On his part, the Chief Executive Officer of FMO, Mr Jürgen Rigterink, noted that, “FMO is proud to have arranged this successful syndicated loan agreement for our long-standing partner Ecobank Group. Through this investment we support small and medium-sized enterprises in some of the most underbanked countries in Africa.
“Although SMEs in these countries provide the majority of jobs, their access to finance remains limited. We are really happy to bring new investors to these markets and help to spur economic growth where it is needed most.”
