Amid persistent funding constraints facing micro, small-scale enterprises (MSMEs), Advans La Fayette Microfinance Bank has raised N6 billion through its debut commercial paper (CP) issuance under a N20 billion programme, strengthening its capacity to expand credit to businesses and deepen financial inclusion.

The series one issuance, which was oversubscribed, marks the microfinance bank’s entry into the Nigerian capital market and reflects growing investor confidence in its governance framework, business model and growth prospects.

The funds raised are expected to strengthen the bank’s funding base, diversify its financing sources and provide additional liquidity to support lending to MSMEs, a sector widely regarded as a key driver of employment, innovation and economic growth.

Speaking at the signing ceremony in Lagos, the Chief Executive Officer, Advans La Fayette Microfinance Bank, Elvis Kwabena Oheneba, described the transaction as a strategic milestone that would support the institution’s long-term growth ambitions.

According to him, the successful issuance demonstrates investor confidence in the bank’s operations and reinforces its commitment to expanding access to finance.

“Today represents more than the execution of a financing transaction. It is a strong statement of confidence in our institution, our strategy, our governance framework and our long-term ambition to deepen financial inclusion while building a stronger and more sustainable financial institution, “he said.

Oheneba noted that the CP would provide a platform for the bank’s next phase of expansion while supporting sustainable business growth through prudent risk management, operational efficiency and responsible lending.

A non-executive director of the bank, Rukaiyat eI-Rufai, said the initiative would help to address the financing challenges faced by many Nigerian MSMEs despite their significant contribution to economic development.

She said the programme would enable the institution to increase support for businesses that drive productivity and job creation while promoting financial inclusion among underserved segments of the economy.