By PROVIDENCE OBUH

Diamond Bank in collaboration with the International Finance Corporation (IFC) has said that it would further strengthen the Micro Small and Medium Enterprises (MSMEs) in the country by making funds available to grow the sector.

This is in line with the $70million 7-year convertible subordinated loan granted to the bank by IFC and Africa Capitalization Fund Limited (a specialized IFC-fund set up and managed by IFC Asset Management Company.

Speaking at a media briefing heralding the signing ceremony of the Tier 2 loan, Chief Executive Officer of the Bank, Dr. Alex Otti said that the facility would go a long way in helping the bank expand its retail banking footprint across Nigeria and West Africa.

Otti describe the instrument as a succour to the bank customers, adding that it would further help in strengthening the bank’s ability to grow its MSMEs banking business.

Accordingly, he said the loan would assist African banks in raising capital to fund growth.

He said, “As the leading SMEs bank, we have indicated in March 2011 that we would continue to make funding available to Small and Medium Scale Enterprises in the real sector of the economy as they are acknowledged as the undisputed engine of economic growth and development.

“With our branches close to 250 around the country, with excellent services driven by innovation and delivered through the most advanced banking technology platform in the market, Diamond Bank currently offers full range of banking services through its offices in Republics of Benin, Togo Cote D’voire and Senegal. Diamond Bank has over the years leveraged its underlying resilience to grow its asset base and successfully retain its key business relationships.

“We have posted a net profit before tax of N15.4 billion in the half-year ended 30th June 2012, representing an increase of 413 per cent from the N3 billion it recorded in the corresponding period of 2011. Total assets stood at N960 billion as at 30th June 2012, a growth of 20 per cent from31st December 2011 position of N802 billion.”

On the other hand, IFC Country Manager for Nigeria, Mr. Solomon Adegbie-Quaynor said that the corporation’s capital base outstanding in Nigeria is over N1 billion, while about 70 per cent of that is in the financial sector.

Adegbie-Quaynor said it is increasingly focusing on doing more in the real sector of the economy, saying that it is interested in the infrastructural and the industrial sector, among others.

“Our partnership with Diamond bank is not only going to be investment in Diamond Bank but is also going to be co-investment or co-financing power project, transport project, oil and gas infrastructure project. Going forward, we are very interested in Nigeria and we do hope that our investment will be primarily in the real sector but in partnership with Diamond bank,” he said.