47338 - Sterling Bank Nigeria GWFP RSF

Who We Are
Who We Are

IFC is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people.
More About Us
About IFC

Our Leadership

Development Partners
Accountability

Learn more about accountability
Annual Report

Download the Report
What We Do
What We Do

IFC advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries. We achieve this by investing in impactful projects, mobilizing other investors, and sharing expertise.
What We Do Overview
SOLUTIONS

Our products and services
OUR PRIORITIES

Climate Business

Fragile & Conflict Afflicted Situations

Gender

Mobilizing Private Capital

Sustainability
SECTORS & EXPERTISE

Agribusiness & Forestry

Creative Industries

Education

Financial Institutions

Funds

Health

Infrastructure

Manufacturing

Public-Private Partnerships

Tourism, Retail & Property

Trade & Supply Chain Finance

Venture Capital

Working Upstream
Where We Work
Where We Work

As the largest global development institution focused on the private sector, IFC operates in more than 100 countries around the globe. We apply lessons learned in one region to solve problems in another.
Overview
By Region

Africa

East Asia and Pacific

Europe

Latin America and the Caribbean

Middle East and Central Asia

South Asia
Our Impact
Our Impact

Our impact improves lives. IFC brings a clear set of advantages to the world’s most challenging markets. Including a history of innovation, a global mandate, and a determination to achieve measurable development impact.
Our Impact Overview
PRINCIPLES & MEASUREMENT

Impact Investing at IFC

Measuring and Monitoring (AIMM)

Evaluation

Sustainable Development Goals (SDGs)

Owned by 186 member countries and consistently rated AAA/Aaa. IFC aims to achieve our mission of promoting development by providing debt and equity to the private sector, through a range of benchmark and bespoke products.

For Partners

For Investors

Get in Touch

Summary of Investment Information

Project Number

47338

Company Name

STERLING BANK PLC

Date SPI Disclosed

Nov 5, 2024

Country

Nigeria

Region

Africa

Projected Board Date

Dec 5, 2025

Environmental Category

FI-2 - Limited

Status

Active

Last Updated Date

Feb 27, 2026

Department

CF3CA - Regional Industry - FIG Africa/FIG Central Africa

Industry

Financial Markets

Previous Events

Approved : Dec 9, 2024

Sector

Commercial Banking - General

Additional Project Attributes

Blended Finance

Project Description

The proposed Project consists of a financing package of up to US$25 million (the Project) for Sterling Bank Limited (Sterling Bank or the Bank), comprised of the following:

(i) a US$20 million Global Warehouse Finance Program (GWFP) facility to be processed under the Africa Trade and Supply Chain Recovery Initiative (ATRI); and

(ii) an unfunded agri Risk Sharing Facility (RSF) of up to US$5 million (equivalent in Naira) on a US$10 million (equivalent in Naira) portfolio of farmers to be originated through a partnership with Babban Gona (BG), an agricultural technology company (AgTech) in Nigeria for the benefit of maize smallholder farmers (SHFs) in its network. IFC will provide advisory services support on the use of the agri-RSF by the Bank. The RSF would be processed under IFC’s Small Loans Guarantee Program European Commission/Private Sector Window (SLGP EC/PSW or the Program), a programmatic approach to risk sharing which aims to enhance and strengthen the capacity of financial institutions for risk taking and financing of MSMEs in eligible countries.

Sponsor / Cost / Location

SLGP EC/PSW benefits from a pooled first loss guarantee provided by the European Union, represented by the European Commission (EC), via European Fund for Sustainable Development (the "EFSD") and the IDA IFC-MIGA Private Sector Window’s Blended Finance Facility (“IDA PSW-BFF”). The EFSD was launched by EC in 2016 and designed to leverage additional financing by allowing risk-sharing with private investors, international financial institutions, and development banks. IDA PSW-BFF was created by the Word Bank Group to catalyse private sector investment in IDA countries, with a focus on fragile and conflict-affected states. The concessional support from IDA PSW-BFF and EFSD would enable IFC to incorporate product enhancements to offer more efficient, competitive and scalable risk sharing facilities (RSFs) to local financial institutions to support lending to MSMEs, and at rates that are affordable. The concessional support would, therefore, also enable Sterling Bank to expand lending to the MSMEs where lack of financing is limiting the capacity of those clients to grow their businesses. The level of concessionality (i.e., “subsidy) for the Program is estimated to be up to 9.7% of the total portfolio of €486 million of the entire program. The estimate of the subsidies is based on the difference between (i) a “reference price” (either a market price if available; the price calculated using IFC’s pricing model, which comprises three main elements: risk, cost, and profit; or a negotiated price) and (ii) the “concessional price” being charged by the blended concessional finance co-investments under the Programs. As is the case with all IFC’s blended concessional finance co-investments, this project has been assessed against the Enhanced Blended Concessional Finance Principles for Development Finance Institution (“DFI”) Private Sector Operations adopted by IFC and more than 20 other DFIs in 2017. Further information on these Enhanced Principles, IFC's blended finance approach and governance, and historical information on estimated subsidy levels in IFC's blended finance portfolio can be found at: www.ifc.org/blendedfinance. The ATRI Program is available to existing and new clients and IFC is open to engaging with eligible financial institutions and companies engaged in trade under this initiative. In addition, SLGP EC/PSW is a platform approach that can be accessed by other financial institutions in the eligible countries as well.

Product Line	IFC Investment (million USD)
Risk Management
Guarantee	5.0
Loan	20.0
Equity

IFC's loan to the financial institution described in this SII is targeted for on-lending to the following sector(s):

Product Type	Use of Proceeds
Guarantee	Loans to MSME (mix of Micro and SME)
Straight Senior Loan	Short/Medium Term Loans to Corporates

IFC's Definitions of Targeted Sectors can be found here.

Development Impact

IFC anticipates that the Project will catalyze financial inclusion for smallholder farmers and rural borrowers, demonstrating the effectiveness of the partnership model between financiers and Agtech companies. IFC anticipates that the Agri RSF will increase access to finance for farmers by providing Sterling with an efficient and competitive risk mitigating tool to accept a higher degree of lending risk. IFC anticipates that the RSF will enable the Bank to sustainably increase its agri-portfolio risk profile. The RSF is expected to help increase the availability of locally produced staple crops, increase access to fertilizers and contribute to food security in the context of high food inflation which threatens food security. Nigeria which relies on imports to meet its food and agricultural production shortfalls ranks 107th out of 113 countries in the Global Food Security Index. The facility will facilitate agricultural intensification in Nigeria through increase farmer’s access to finance for crop production and fertilizers import. The program expects to reach 73,000 hectares and 110,000 farmers with increased access to inputs, agri equipment, insurance, and markets, resulting in improved livelihood and productivity.

Non-Financial Additionality: Knowledge, innovation and capacity building. IFC plans to provide advisory services to Sterling Bank and Babban Gona in areas of risk management, credit scoring enhancement, and agri-products development. In addition, in preparation for the Bank’s first sustainability bond issuance, IFC may provide support in the development of the Bank’s new sustainability financing framework. Financial Additionality: Financing Structure. IFC will provide a three-year unfunded RSF of up to US$5 million to Sterling Bank in Nigeria where risk mitigation instruments are not common.

Indicator	Metrics	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
Number of Outstanding Loans, SMEs : (target group)	loans	Not Available	Not Available	Not Available
Value of Outstanding Loans, SMEs : (target group)	USDMill	Not Available	Not Available	Not Available
Number of Outstanding Loans, SMEs	loans	Not Available	Not Available	Not Available
Value of Outstanding Loans, SMEs	USDMill	Not Available	Not Available	Not Available

E&S Category Rationale / Risks and Mitigation

This Project has been categorized as FI-2 in accordance with IFC's Policy on Environmental and Social Sustainability, based on the use of proceeds. The Project will support Sterling in increasing access to finance of Small and Medium Enterprises (SME) agribusiness operators in Nigeria. Potential E&S risks associated with agribusiness and supply chain finance activities are typically associated with production of commodities, supply chain management and reputational risks. These may include: child and forced labor, gender-based violence and harassment, occupational health & safety, wages, overtime, and overall safe and fair employment conditions, life and fire safety, protection including emergency response, emissions to air and water, hazardous materials, resource use efficiency and biodiversity risks. E&S risks could also derive from the Bank's ability to assess and manage supply chain risks of the companies to be supported under the Project. Overall, the E&S risks are expected to be of a medium nature. The Project will not support coal related activities and higher-risk transactions that may include: a) involuntary resettlement, b) risk of adverse impacts on indigenous peoples, c) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage or d) significant occupational health and safety risks. The Bank’s labor practices are generally aligned with IFC Performance Standard 2: Labor and Working Conditions. As part of this Project, the Bank will be required to enhance its non-discrimination and gender-based violence and harassment policies. The review of Life and Fire Safety (LFS) requirements revealed that the Bank meets the respective IFC requirements. IFC's applicable E&S requirements for this Project are the IFC Exclusion List, E&S laws in Nigeria, and the IFC Performance Standards as they pertain to soft commodity supply chains. In addition, the Bank will be required to meet LFS requirements and the requirements and IFC's Performance Standard 2.

Sterling has an established E&S management system (ESMS) with a dedicated E&S team and developed ESMS procedures for the review of relevant risks. As per the ESMS, the Bank's E&S review includes E&S risk identification and assessment through standard questionnaires and forms assessing sub-clients against the IFC Exclusion List, Nigerian E&S laws and the IFC Performance Standards, E&S risk categorization, incorporation of E&S clauses in the legal agreements, and monitoring. The ESMS procedures are implemented by E&S staff who report to an ESMS Manager and the Chief Risk Officer. As part of this Project, Sterling will support trade in soft commodities certified based on a credible certification standard in line with IFC’s requirements. The Bank will also work with agribusiness operators to enhance supply chain E&S practices. Finally, Sterling will be required to provide implementation reports.

S.no	Title	Anticipated Completion Date
1	Agreement between Sterling and the Company on ESMS updates	12/15/2024
2	Update ESMS	12/31/2024
3	Implementation report	06/30/2025
4	Enhance GBVH policies	03/15/2025
5	Enhance HR policies	12/15/2024

Contacts

For Inquiries About the Project, Contact

Sterling Bank Limited
Abubakar Suleiman
Chief Executive Officer

abubakar.suleiman@sterling.ng
Sterling Towers, 20 Marina, Lagos, Nigeria
https://sterling.ng/

For Inquiries and Comments About IFC, Contact

General IFC Inquiries
IFC Communications
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Projects

Summary of Investment Information

Project Description

Sponsor / Cost / Location

Development Impact

E&S Category Rationale / Risks and Mitigation

Similar Projects

Contacts

Projects

Summary of Investment Information

Project Description

Sponsor / Cost / Location

Project Sponsor and Major Shareholders of Project Company

Total Project Cost and Amount and Nature of IFC's Investment

Blended Finance

IFC's Investment as Approved by the Board

FIG Use of Proceeds/Beneficiaries

Location of Project and Description of Site

Development Impact

Anticipated Impact Measurement & Monitoring (AIMM) Assessment

Governance Risk Assessment

IFC's Role and Additionality

Development Results

E&S Category Rationale / Risks and Mitigation

Environmental & Social Categorization Rationale / Key Risks & Potential Impacts

Environmental & Social Management System (ESMS)

Mitigation Measures / Environmental & Social Action Plan (ESAP)

Press-Release

Related Environmental Document

Similar Projects

Contacts

Information on E&S Complaints and Grievance Mechanisms

Disclaimer