The Bank is among the largest universal banking groups in the Nigeria, with a well-established domestic retail and corporate banking franchise. In addition to its core banking activities, the Bank has four non-bank subsidiaries providing specialty services in capital markets, property and mortgages, insurance; registrar services, and asset management. Outside Nigeria, the Bank has banking subsidiaries in the Gambia, Ghana, Liberia, Sierra Leone and the UK and GTB Finance, a non banking finance subsidiary located in the Netherlands. The Bank’s shares are 100% listed on the Nigerian Stock Exchange and are widely held by Nigerian and international investors, with no single investor having a controlling interest.

The proposed investment will be in the form of a loan of up to $170million and equity of up to US$30 million for IFC’s own account.

200.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	170.0
Equity	30.0

* These investment figures are indicative

The Bank is headquartered in Lagos, Nigeria with 158 branches nation-wide branch network in Nigeria and international banking subsidiaries and representative offices in the Gambia, Ghana, Liberia Sierra Leone and the UK.

Stamp of approval: IFC’s involvement in the Project demonstrates its commitment to the Nigerian banking sector during adverse market conditions and validates the long-term viability of a systemically important bank. This stamp of approval should facilitate future fund-raising efforts that might be undertaken by well-run banks in Nigeria. Access to scarce dollar long-term financing: Given the difficult global market conditions, IFC is probably one of the very few sources of long-term funding of such magnitude available to the banking sector in Nigeria. Knowledge sharing: IFC’s ability to engage strategically with the Bank and provide support to further enhance the Bank’s implementation of a social and environmental management system.

The Project will: (i) provide a stamp of approval for GT Bank; (ii) demonstrate and signal IFC support of Nigerian banking sector in a period of low confidence; (iii) provide scarce long-term funding under the current market conditions; (iv) provide confidence at a time when others remain nervous about Nigeria; and (v) further improve corporate governance and risk management standards in the sector.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. During appraisal, IFC analyzed the FI portfolio for types of transactions, size, tenor and industry sectors and determined as the Applicable Performance Requirements, based on an analysis of the potential Social and Environmental risks associated with the FI portfolio and considering IFC’s investment, the IFC Performance Standards, the host country S&E laws and regulations and the IFC Exclusion List. IFC also reviewed the FI’s existing Social & Environmental Management System (SEMS), and capacity to implement the same. Based on the Applicable Performance Requirements and SEMS and capacity review, the project will be required to (i) Upgrade its existing Social & Environmental Management System (SEMS), prior to disbursement/investment to the satisfaction of IFC, (ii) Retain responsible, qualified persons to manage and implement the SEMS, (iii) Commit to implement the SEMS, to ensure that its activities are in compliance with the Applicable Performance Requirements, (iv) Submit a periodic report to IFC as per a format to be provided by IFC, (v) Demonstrate commitment to applying the labor standards established by the IFC Performance Standard 2: Labor and Working conditions.