First Bank of Nigeria

Promoter – Financial Intermediary

First Bank of Nigeria (FBN)

Location

• Nigeria

Description

This project involves a loan to FBN of up to EUR 50 million. It aims at supporting the development of FBN, in particular with regard to (i) the implementation of its retail strategy, (ii) the reinforcement of its position in the corporate banking market and potentially (iii) the development of regional synergies. FBN, thanks to its unique position, is going to be a leading actor in financial deepening and economic integration in West-Africa.

Objectives

Despite improvements in the Nigerian economic environment over the last couple of years, local banks continue to experience constraints in their access to long term resources. This operation will give FBN access to a source of stable long-term finance in hard currency, which it needs to implement its ambitious strategies. It will also contribute as a catalyst to increasing the flow of long-term private funding into the banking sector.

Comments

Financial Intermediation

Sector(s)

• Services

Proposed EIB finance (Approximate amount)

Up to EUR 50 million.

Total cost (Approximate amount)

Not applicable.

Environmental aspects

Investors in Nigeria are required to respect the national legislation on the matter. FBN recognises that environmental risks have to be part of the standard risk assessment procedures and have to be adequately and appropriately addressed. It verifies in its appraisal of projects that companies have received the necessary licenses and performed an EIA when required.

Procurement

FBN will ensure that equipment, works and services to be financed under this operation will be procured at the most advantageous prices, having regard to quality and efficiency, and that an open international bidding procedure will be followed where appropriate.

Status

Signed - 5/12/2006