The sponsor of the project is Guaranty Trust Bank Plc. GTB was founded in the early 1990s by Mr. Fola Adeola, (member of GTB’s Board) and Mr. Olutayo Aderinokun (current Managing Director/CEO). The two sponsors, who both had prior banking experience, felt that the time was right to start a niche bank because of the void created by the departure of most foreign banks from Nigeria. GTB was incorporated in July 1990, obtained its banking license in August 1990, commenced operations in February 1991 and was listed on the Nigerian Stock Exchange in 1996. GTB provides a full range of financial services to its customers, mainly mid to top tier corporate and institutional clients, and high net worth individuals. GTB is predominantly a commercial bank with a national branch network covering the major commercial/industrial centers in Nigeria. The operations are supported by a strong technology platform which links the entire branch network via a Wide Area Network with real time capabilities. GTB is also diversifying its activities both in terms of services and geography. Over the last two fiscal years, the Bank acquired an insurance company and opened two subsidiary in Gambia and Sierra Leone. Despite the difficult economic conditions that have prevailed in the country most of the period, as well as the increased competition, GTB has shown strong and stable growth and profitability from its inception to date. Over the last five years, GTB’s total assets grew from $320 million to $879 million and its equity base from $30 million to $85 million. Its ROAA and ROAE averaged 4.6% and 41% respectively over the same period. In 2003, GTB joined the group of the AAA rated banks in the country, and became one of the seven settlement banks retained by the Central Bank of Nigeria (CBN), demonstrating its financial strength, national outreach and proven IT/Operations. GTB’s success story has been used as a four-part case study at the Harvard Business School.

IFC’s investment will be in the form of a revolving line of credit of up to $20 million to GTB. The loan will be structure to allow the bank to match-fund its clients’ needs.

20.0 million (USD)

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

* These investment figures are indicative

The location of the project is Lagos, Nigeria.

This project is expected to have a direct contribution to poverty reduction by providing much needed foreign currency term finance to supplement the country’s low foreign direct investment. IFC’s investment will expand access to long term funding for private companies in Nigeria and act as a catalyst in increasing much needed flow of capital into the country. GTB has a strong pipeline of project in the oil & gas, telecommunications, energy and manufacturing industries which plays a significant role in generating local employment and enabling the business and economic environment in the country. IFC has a number of important roles in this project: - first, IFC’s investment will allow GTB to provide critical term finance to private Nigerian companies, at a time when access to such resources continues to be scarce; - second, IFC's investment enables GTB not only to grow existing term finance activities but also to have the critical resources it will need to tap into the upcoming privatizations transactions and - third, by providing GTB with a second and longer term facility, IFC will signal its successful experience in and commitment to the Nigerian financial sector.

This is an FI Type 1 project, which requires the beneficiary bank to establish and maintain an environmental management system to ensure that investments under relevant operations meet host country environmental, health and safety requirements, and are consistent with IFC’s exclusion list. GTB has had a good record and is compliant with IFC environmental policies. However, the IFC will re-assess GTB’s environmental management system and, if necessary, will work with the bank to strengthen its capacity to meet these requirements.
Location of environmental documents in locally affected community