DBN secures €25 million from KFW for MSMEs and renewable energy

DBN secures €25 million from KFW for MSMEs and renewable energy

As part of its contribution to rebuilding Nigeria’s struggling economy, KFW Development Bank has injected €25 million into the Nigerian economy for the growth and development of Micro, Small and Medium Enterprises (MSMEs) and the renewable energy sector through the Nigerian Development Bank. . (DBN) company

Commenting on the development of the DBN office in Lagos, the Managing Director and CEO of DBN, Mr. Tony Okpanachi, said KFW has always supported the Nigerian economy in various sectors, including MSMEs and Energy. He said he was eager for the sector to recover.

He said: “Today, we have just signed an agreement for a €25 million credit facility provided by KFW to DBN for lending to MSMEs. We are a wholesale DFI that provides access to credit to MSMEs through lending. We provide them with wholesale funds for lending to MSMEs.”

He added that DBN already has 65 financial institutions aligned with green and renewable energy and businesses that work directly with and support SMEs.

He said the bank would monitor and evaluate the process.

“We give them a line and by the time they draw the line, we know which customers they are lending directly to. , and discuss how it affected their business. We don’t just disburse funds to our lending partners for mitigation, we monitor them throughout the process.

The ultimate objective is the impact on them and the economy,” he said. The banker expressed optimism about the funding, saying there would be regular reporting feedback as partners (financial institutions) draw the line.

He said the cost will be determined by the bank as it bears the credit risk. However, he noted that the criteria and conditions for accessing credit will be seamless.

“These are interesting times because small and medium-sized enterprises (SMEs) are the foundation of any economy. With this credit, they will expand their businesses, create jobs, and boost our nation’s GDP. We are not ignoring the economic environment, which is why DBN is creating access to finance in various areas and providing moratoriums to MSMEs before they can mature and maintain stability in their businesses. and an extension of tenure. Pay,” he pointed out.

KFW’s Senior Portfolio Manager (Equities/Funds, Sub-Saharan Africa and Latin America) Pierre Anuchu said KFW would continue to provide support to the Nigerian economy in a variety of ways.

Source: guardian.ng

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