AfDB Approves USD 100 Million LOC to Nigeria’s Guaranty Trust Bank
Tunis, 23 June 2010 - The Board of Directors of the African Development Bank (AfDB) on Wednesday, 23 June 2010 in Tunis approved a USD 100-million line of credit to Nigeria’s Guaranty Trust Bank (GTB) for project funding in various sectors of the Nigerian economy.
The line of credit will be used primarily to support GTB’s long-term project finance activities in Nigeria mainly in the transportation, infrastructure, oil and gas and manufacturing sectors. It will essentially be used to support plant expansion, industrial retooling, project rehabilitation and infrastructural projects with particular focus on companies with strong foreign currency income streams.
These projects will ultimately enhance productive capacity in the country and stimulate growth in funded sectors, including the non-oil sector. The projects will increase economic output, improve the country’s competitiveness, generate government and export revenues and create employment. The line of credit will underpin national poverty reduction efforts as well as facilitate national development.
This transaction will complement the Bank’s existing facility provided to GTB in May 2006 and deepen the partnership between the two institutions. Through this partnership, the AfDB will be able to increase its development impact on the continent by supporting sustainable provision of long-term financing in West Africa.
The intervention accords strongly with a number of AfDB’s strategies, and has the potential for powerful and sustainable development impacts. GTB contributes to the development of West Africa’s private sector by providing much needed financial resources to important growth industries.