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FSDH, AGF offer fresh N3.8 billion credit line to Nigeria’s business

By Guardian Nigeria
11 October 2022   |   3:24 am
African Guarantee Fund (AGF), through its subsidiary AGF West Africa, yesterday, signed an agreement with FSDH Merchant Bank Limited to the tune of N3.8 billion to scale up the bank’s small and medium-scale..

Head, Business Banking, FSDH, Dennis Ezaga (left); Chief Financial Officer, FSDH, Seun Omole; Chief Risk Officer, FSDH, Richard Osuagwu; Executive Director, FSDH, Taiwo Otiti; Managing Director/Chief Executive Officer, FSDH, Bukola Smith; Managing Director, West Africa, AGF, Bendjin Kpeglo; Head Of Region, AGF, Germain Dodor; Group Head, Corporate Banking, FSDH, Stella-Marie Omogbai; Group Head, Global Markets and Prestige Banking, FSDH, Hakeem Muhammad; Company Secretary and Legal Counsel, FSDH Merchant Bank, Bolanle Meshida, at the agreement signing ceremony held in Lagos.

African Guarantee Fund (AGF), through its subsidiary AGF West Africa, yesterday, signed an agreement with FSDH Merchant Bank Limited to the tune of N3.8 billion to scale up the bank’s small and medium-scale (SME) business portfolio for an initial five-year period.

Access to finance is a key constraint to business growth in Nigeria and other African countries. It is particularly difficult for SMEs and women-led businesses to access funding in Nigeria, a gap AGF and FSDH intend to bridge.

In a statement, the Managing Director of FSDH, Bukola Smith, acknowledged the impact of the scheme, saying: “At FSDH, we are promoting investments in growing sectors of the Nigerian economy like agriculture, healthcare, technology and the female economy. This transaction will open more opportunities for us to support the growth of the economy on a considerable scale and we will keep working with all relevant stakeholders to maintain this momentum.”

She further stated that the agreement would support the bank’s commitment to assisting women-owned businesses and SMEs in closing the funding gap.

“The N3.8 billion credit line will strengthen our short-term business loans and will be deployed directly to mid-sized companies and through SME aggregators, business incubators, investment acceleration programmes for businesses who are willing to scale and our women in business initiative”.

Last November, FSDH announced a N2 billion in funding for women-led businesses in partnership with the Development Bank of Nigeria (DBN).

The recent agreement with AGF further strengthens the resolve to contribute to the economic growth of businesses and entry into new markets, the bank said.

The Managing Director of AGF West Africa, Bendjin Kpeglo, said the partnership will serve the common interests of both AGF and FSDH Merchant Bank to strengthen, promote, and develop cooperation in creating financial inclusion and supporting systems for entrepreneurs.

“The facility is centres around transforming the SME sector, while also particularly supporting women-led businesses who access less financing due to structural inequalities and discrimination. Through the AFAWA Guarantee for Growth program, we will boost the already existing products that FSDH Merchant Bank avails to women entrepreneurs. The guarantee will also foster sustainable development by unlocking financing for businesses focused on clean energy, cleaner production, green services, climate-smart agriculture and natural resource management,” Kpeglo said.

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