Ecobank Transnational Incorporation (ETI) says it has signed a $50 million loan agreement with PROPARCO.

PROPARCO is a development finance institution jointly held by Agence Française de Développement (AFD) and public and private shareholders from the North and South.

The bank over the weekend notified the Nigerian Stock Exchange (NSE) that it has signed a loan agreement with PROPARCO for a $50 million loan facility with a 10 year maturity.

According to ETI, “PROPARCO’s loan will allow Ecobank to strengthen its long-term resources and will support the development of its local banking network.

Indeed, the group has become the first pan-African banking group to have an integrated regional banking network in sub-Saharan Africa.”

PROPARCO is an active player in banking consolidation in the region and will allow Ecobank to strengthen its operational capacities and its role in developing the local economic base, particularly for small and medium-sized enterprises.

The bank believed that transaction has taken place against a background of fundamental changes in Africa’s banking sector.

“Pan -African banking groups such as Ecobank are developing alongside traditional players and are entering new market segments, targeting those previously excluded from the banking system,” the bank said.

They are opening more branches and are providing innovative and low-cost services tailored to communities who lack access to banking services. These groups are driven by economic growth, which is gathering pace in Africa, and their activity is increasing steadily.

Source: Daily Trust (by Kayode Ogunwale)