Intercontinental Bank Set to Transform SMEs

 Dr Erastus Akingbola, group chief executive, Intercontinental Bank Plc has pledged to transform small and medium enterprises (SMEs) in Nigeria with the $100m facility bagged from African Development Bank (ADB).
He declared that the bank would assist SMEs with good track records, to see if such SMEs are already borrowing from banks and how well the loan is serviced.
“We won’t give to serial bad debtors that go all over banks borrowing and as such we will be careful as to who gets this facility,”.
“I think with this fund, which is a lot cheaper than what we can source from Nigeria depositors, we will be able to support the SMEs better, so the entrepreneur will be able to come to Intercontinental and borrow.
This is the largest of such credit made available to any bank in Nigeria and the tenure is seven years. So we believe this is good for Nigeria and good for our customers,” Akingbola said.
The Intercontinental bank boss stated that the decision to go to ADB was informed by the paucity of long term funds in Nigeria’s money market adding that the loan facility granted by the ADB was a beginning of mutually beneficial partnership between the two institutions.
Meanwhile, Mr. Mandla Gantsho, vice-president, operations, African Development Bank (ADB) expressed confidence in the bank’s ability to deliver, saying that this was the reason ADB made it a beneficiary of the $100million facility.
He explained that Intercontinental Bank Plc bagged the $100million facility based on ADB’s conviction that it has an important role to play in accelerating economic growth, social development and economic integration of African nations, in addition to its pedigree in the Nigerian banking sector.
“It is focusing on the small medium enterprises sector and that particular sector, as we all know in Africa creates the largest number of jobs and it promotes economic development into a very long term. So we have chosen ICB for those reasons.”
Gantsho explained that ADB’s granting of the credit attested to its confidence in Intercontinental bank and also its “management in providing the necessary financial support and assistance to small medium enterprises in this great nation, Nigeria. And also we have confidence that there will be delivery of real development impact.”
“The ADB is committed to supporting this institution with comprehensive assistance, such as the line of credit. We hope that the support will go a long way to strengthen this particular institution and enhance its impact on the lives of Nigerians “Mr. Gantsho said.
The facility he opined would assist Intercontinental Bank implement its 2008/2012 business plan, noting that this aligned with ADB’s strategic plan.