Project detail - LA FAYETTE MICROFINANCE BANK LIMITE

LA FAYETTE MICROFINANCE BANK LIMITE

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Who is our client

As a microfinance bank, La Fayette Microfinance Bank Ltd (Advans Nigeria) offers simple loan and deposit services targeting micro, small and medium enterprises (MSMEs) in Oyo State, Nigeria. These are highly underserved in the main urban areas of Oyo State. Headquartered in Ibadan, the state’s capital, Advans Nigeria will start its MSME operations with short-term loan products including microloans, business loans and SME loans, with a large emphasis on business loans to the semi-formal sector. Next to lending products, Advans Nigeria will also offer simple financial services such as savings, current and term deposit accounts in local currency, as well as transfer services within the country.

Funding objective

This funding consists of a EUR 0.7 mln equity investment in Advans Nigeria for the development of MSME finance in Oyo state. Advans SA Sicar, the holding Advans Nigeria belongs to, will start and operate this institution according to its high standards.

Why we fund this project

FMO provides high-risk finance to enable the start up of new microfinance institutions, therewith enhancing access to finance in Nigeria. MSMEs have almost no access to finance in Nigeria, despite playing a crucial rule in employment generation and wealth creation. Advans Nigeria will provide means to the bottom of the pyramid, empowering them to progress out of poverty.

Region
Africa
Country
Nigeria
Sector
Financial Institutions
Signing date
1/27/2012
Total FMO financing
NGN 180.00 MLN
Fund
MASSIF
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
C