The project sponsor is Diamond Bank, which offers a full range of products and services in retail, commercial, corporate and investment banking, including advisory, investment, debt, equity, lending and transactional services supported by a network of over 76 branches. The operations are supported by a strong technology infrastructure. On October 27, 2005, the Central Bank of Nigeria (CBN) gave its final approval to the merger of Lion Bank Plc with Diamond Bank Plc. The approval resulted in a larger capitalized Diamond Bank Plc with total Shareholders Funds of NGN28.6 billion (US$220 million), which surpasses the NGN25 billion (about US$192 million) minimum capitalization required by CBN by December 31, 2005.

The proposed IFC investment will be in the form of a loan of up to $20 million to Diamond Bank Plc for IFC’s own account.

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 contribute to private sector development by providing much needed foreign currency term finance to supplement the country’s low foreign direct investment. The lack of term lending in Nigeria has resulted in lost opportunities for financial sector development and hindered the growth of the economy. IFC’s loans to Diamond Bank Plc (and other financial institutions) will significantly 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. In addition, by focusing on lending to small and medium enterprises, manufacturing, private infrastructure and energy industries, the project will help in the diversification of the country’s economy outside the natural resources sector. IFC has a number of important roles in this project which include: - IFC’s investment will allow Diamond Bank to provide critical term finance to private Nigerian companies, at a time when access to such resources continues to be scarce;

This is an FI Type 2 project. Diamond Bank Plc will be required to undertake an environmental review of each subproject. Diamond Bank has had a good record and is fully compliant with the IFC environmental policies. However, the IFC will re-assess Diamond Bank’s environmental management system during appraisal.
Location of environmental documents in locally affected community