|Approval Date||17 Jul 2013|
|Signature Date||24 Mar 2014|
|Sovereign / Non-Sovereign||Non Sovereign|
|DAC Sector Code||24030|
The project aims to provide a 7-year line of credit (LOC) to Fidelity Bank Plc - Nigeria amounting to USD 75 million and a syndicated LOC of up to USD 75 million on a best-effort basis. Fidelity began operations in 1988 as Fidelity Union Merchant Bank Ltd, became a full service bank and public limited company in 1999 and converted into a universal bank in 2001. The proposed financing will provide much-needed medium-term liquidity to Fidelity and will therefore enable Fidelity to fund its projects pipeline and thus expand its loan portfolio, particularly in the manufacturing and infrastructure sectors. 20% of the LOC proceeds will be dedicated towards SMEs who, in accordance with the Central Bank of Nigeria’s (CBN) definition comprise of enterprises with a maximum asset base (excluding land and buildings) of N500 million (USD 3.18 million) and a maximum of 300 employees.
The purpose of the project is to strengthen the capacities of an indigenous bank to better serve its clients and increase the tenors of loans to subprojects. Specifically, the project will help to: i) reduce Fidelity’s asset-liability maturity mismatch; and ii) enhance Fidelity’s ability to provide medium-term lending.
The direct beneficiaries of the intervention are Fidelity Bank Plc, the infrastructure, manufacturing and SMEs sectors, which are of paramount importance for Nigeria's transformation agenda and economic growth.
African Development Bank
|Last Update||24 Oct 2020|