Long-term financing totalling USD 85 million arranged for First National Bank Ghana
Many developing countries are suffering from the economic consequences of the COVID-19 pandemic. As a result, small and medium-sized enterprises (SMEs) in particular are dependent on reliable access to credit, and financial institutions play a vital role in this respect. DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH is therefore providing a long-term loan amounting to USD 30 million to First National Bank Ghana Ltd. Additional funds are being supplied by other European development finance institutions: Finnfund (Finland), Proparco (France) and Norfund (Norway). This brings the total volume of finance syndicated by DEG to USD 85 million, which has now been disbursed.
Funding for private households and SME customers
First National Bank Ghana offers the full spectrum of banking services to retail and commercial clients. Having recently acquired and integrated GHL Bank, the leading provider of private real estate finance in Ghana, this funding will assist First National Bank Ghana’s strategy to grow this important asset portfolio.
“With our commitment in Ghana, we are strengthening the real estate sector for private households. We also support SMEs, which are important employers and the driving force behind the private sector, especially in the current situation. This sends out a clear signal of our confidence in Ghana’s economic development”, said Petra Kotte, Head of division Financial Institutions and German Business at DEG.
Dominic Adu, CEO of First National Bank Ghana emphasized: “The world at large is still dealing with the impact of the pandemic. We cannot downplay the importance of scaling up financial support that will help minimize the impact of the pandemic, particularly on SMEs. That is why we will capitalize on funding from institutions like DEG to engineer the expansion of real estate developments and ensure the sustainability of the private sector in Ghana”.
First National Bank Ghana was founded in 2015 with a strong digital banking focus and has been developing successfully ever since. In five years, it has become an established player in its market, with 500 employees and an extended presence across Greater Accra, Ashanti and Western Regions.
First National Bank Ghana is part of the broader FNB franchise. FNB is one of South Africa’s leading retail and commercial banks. DEG has partnered with FNB’s parent, FirstRand Limited since 2002. In 2019, it provided FirstRand with a long-term loan of USD 50 million, its largest financing project in Africa to date.« Back to Member News