FIRST CITY MONUMENT BANK LIMITED
Status: Completed investmentWhy disclosure?
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In case of questions
In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
First City Monument Bank (FCMB) is a wholesale banking group with a growing retail banking business. FCMB was established in 1982 and is headquartered in Lagos, Nigeria. From its early origins in investment banking as City Securities Limited in 1977, FCMB emerged as a Top10 bank in February 2012 following the takeover of FinBank, which was one of the nine banks that failed during the Nigerian banking crisis in 2009. FCMB has been listed on the Nigerian Stock Exchange since 2004 and is continuously growing with about 3,000 employees, 2 million customers, 278 branches and cash-centres, a presence in the United Kingdom (FCMB UK) and a representative office in the Republic of South Africa.
What is our funding objective?
FMO acted as lead arranger for a term facility of US$60 million to FCMB. FMO provided US$25 million and mobilized US$25 million from Proparco and US$10 million from a commercial partner. The facility will be used for on-lending to companies and projects in the infrastructure sector and to support short-term trade-related activities in Nigeria. These are key areas for growth in Nigeria that require long-term funding, which is not readily available in the country.
Why do we fund this investment?
FMO believes that this financing will generate strong economic development impact. Addressing Nigeria’s infrastructure challenges requires sustained expenditure of almost US$14.2 billion per year over the next decade, about 12% of GDP. Since this cannot be fully met by the public budget, the expected contribution of the banking sector in financing infrastructure is increasingly important. However, the Nigerian banking sector is still structurally characterized by a strong supply of short-term funding through retail deposits and a shortage of long-term funding due to the lagging development of financial markets. This ultimately restrains the capacity of the banking sector to finance long-term infrastructure projects that are crucial for economic growth, as well as companies that need long-term loans to expand their operations and create employment. By providing this this long-term loan, FMO aims to help FCMB to bridge this financing gap and capture opportunities to finance infrastructure projects.
More investments
| Date | Total FMO financing |
|---|---|
| 10/3/2023 | USD 30.00 MLN |
| 12/20/2019 | USD 20.00 MLN |
| 7/10/2020 | USD 10.00 MLN |
- Website customer/investment
- http://firstcitygroup.com
- Region
- Africa
- Country
- Nigeria
- Sector
- Financial Institutions
- Effective date
- 3/27/2014
- End date
- 7/10/2020
- Total FMO financing
- USD 25.00 MLN
- Funding
- FMO NV
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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) - A