Jim Baiden, MD of Fidelity Bank (left) exchanging the signed agreement with Sander Verhulp, Investment Officer of FMO
FMO, the Netherlands Development Finance Company and BIO, the Belgian Investment Company for developing countries, are providing support to the financial sector in Ghana with long-term capital that extends financing to local Small, and Medium-sized Enterprises (SMEs).
As part of this effort, FMO has now provided a syndicated senior loan facility of $54 million to Fidelity Bank Ghana (Fidelity).
The facility was arranged by FMO and comprised A-loans from FMO ($25 million) and BIO ($15 million). In addition, participants in the B-loan include Symbiotics ($6 million), Oikocredit ($5 million) and Incofin ($3 million).
“This syndicated facility is a next step in a longstanding relationship between FMO and Fidelity,” said Jurgen Rigterink, CEO of FMO.
“It will increase access to finance for local SMEs and will therefore have a great impact on local companies and the creation of jobs.”
The Managing Director of Fidelity, Jim Baiden, expressed optimism that the partnership would go a long way to help Ghana’s SME sector.
FMO (the Netherlands Development Finance Company) is the Dutch development bank. It supports sustainable private sector growth in developing and emerging markets by investing in ambitious entrepreneurs.
FMO believes a strong private sector leads to economic and social development, empowering people to employ their skills and improve their lives.
FMO focuses on three sectors that have high development impact: financial institutions, energy, and agribusiness, food & water.
With an investment portfolio of EUR 9.3 billion, FMO is one of the largest European bilateral private sector development banks.