First City Monument Bank Limited
Status: Approved 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 Ltd. (‘FCMB’) is a wholesale banking group with a growing SME banking business. FCMB was established in 1982 and is headquartered in Lagos, Nigeria. 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 4,000 employees, 250 branches and cash-centres, and a subsidiary in the United Kingdom (FCMB ltd. UK).
What is our funding objective?
FMO acts as lead arranger for a senior term facility of US$60 million to FCMB. This transaction marks FMO’s fourth engagement with FCMB. FMO provides US$20 million, mobilizes US$30 million through the European Financing Partners (EFP) and US$10 million from a commercial partner. The facility will be used for on-lending to SME companies and Renewable Energy projects. Both 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 contends that this financing will generate strong economic development impact. FMO’s Financial Institutions Africa department has a clear ambition to strengthen the relationship with FCMB. This is because of the firm’s focus on SMEs, which is the backbone of the Nigerian economy and an important means for economic development and employment. Additionally, FCMB is increasing its ambition to take part in the financing of the green transition in Nigeria. By bringing in other participants/lenders FMO is mobilizing funds, while at the same time rendering this process more efficient for our clients.
What is the Environmental and Social categorization rationale?
FCMB is an E&S Cat. A bank due to the high E&S risk portfolio, both in terms of sector exposure and a large portfolio of project finance activities. Many of the large corporate exposures are companies operating in the energy, manufacturing, and real estate sector. Typically, E&S risks of projects in these sectors that need to be taken into account are community grievances, land and natural resources conflicts, resource use, use of hazardous materials, pollution related aspects, harsh labour conditions, occupational health and safety issues, habitat fragmentation, biodiversity impacts, use of security forces, resettlement, etc. FMO has agreed an environment and social action plan with FCMB, with the main aim to increase internal E&S capacity and enhancing the bank’s E&S risk management framework with consultancy support.
More investments
| Date | Total FMO financing |
|---|---|
| 12/20/2019 | USD 20.00 MLN |
| 7/10/2020 | USD 10.00 MLN |
| 7/10/2020 | USD 25.00 MLN |
- Website customer/investment
- http://firstcitygroup.com
- Region
- Africa
- Country
- Nigeria
- Sector
- Financial Institutions
- Publication date
- 10/18/2023
- Effective date
- 10/3/2023
- Total FMO financing
- USD 30.00 MLN
- Funding
- FMO NV
-
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