|Approval Date||23 Jun 2010|
|Signature Date||06 Apr 2011|
|Sovereign / Non-Sovereign||Non Sovereign|
|DAC Sector Code||24030|
Guaranty Trust Bank (GTB) has requested the AfDB for a line of credit in the amount of USD 100 million to partly finance GTB’s advanced pipeline of projects totaling USD 392.2 million mainly in Nigeria. The Line of Credit (LOC) will support plant expansion, industrial retooling, project rehabilitation and infrastructural projects with particular focus on companies with strong foreign currency income streams. In order to meet GTB’s need for long term funds, the LOC will have a tenor of up to 7-years including a two-year grace period. GTB has developed a strong pipeline of 13 projects primarily in manufacturing, infrastructure, oil and gas and transportation. Given these components and the diverse nature of the pipeline, it is expected that these projects will make an important contribution to economic growth and private sector development in Nigeria. GTB currently has an advanced project pipeline of USD 392.2 million of which it will contribute 83.10% of the total cost. The proposed USD 100 million LOC to GTB will cover around 30.68% of GTB’s contribution of USD 325.9 million. It is to be used primarily to support GTB long-term project finance activities in Nigeria mainly in the transportation, infrastructure, oil and gas and manufacturing sectors.
The objective of this project is to provide GTB with foreign currency liquidity to underpin the financing of ongoing projects in key sectors and boost productive capacity.
With the AfDB facility, GTB will be able to fund the projects in its pipeline and between 55 and 65 local corporations and SMEs would benefit from such funding either directly or indirectly.
African Development Bank
|Last Update||07 Aug 2020|