Many developing countries are suffering from the economic consequences of COVID-19 pandemic. As a result, small and medium-sized enterprises (SMEs) in particular are dependent on reliable access to credit, and financial institutions play a vital role in this respect. DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH is, therefore, providing a long-term loan amounting to USD 30 million to First National Bank Ghana Ltd.
Additional funds are being supplied by other European development finance institutions: Finnfund (Finland), Proparco (France) and Norfund (Norway). This brings the total volume of finance syndicated by DEG to USD 85 million, which has now been disbursed.
First National Bank Ghana offers the full spectrum of banking services to retail and commercial clients. Having recently acquired and integrated GHL Bank, the leading provider of private real estate finance in Ghana, this funding will assist First National Bank Ghana’s strategy to grow this important asset portfolio.
“With our commitment to Ghana, we are strengthening the real estate sector for private households. We also support SMEs, which are important employers and the driving force behind the private sector, especially in the current situation. This sends out a clear signal of our confidence in Ghana’s economic development”, said Petra Kotte, Head of division Financial Institutions and German Business at DEG.
First National Bank Ghana is part of the broader FNB franchise. FNB is one of South Africa’s leading retail and commercial banks. DEG has partnered with FNB’s parent, FirstRand Limited since 2002. In 2019, it provided FirstRand with a long-term loan of USD 50 million, its largest financing project in Africa to date.
Original source: DEG
