African Guarantee Fund (AGF), a Kenya-based organization that aims to increase financial inclusion by underwriting commercial bank lending to small and medium-sized enterprises (SMEs) in Africa, reportedly has agreed to guarantee 50 percent of USD 25 million by Diamond Bank Public Limited Company (PLC), a Nigerian commercial bank, via its affiliate institutions in Benin, Côte d’Ivoire, Nigeria, Senegal and Togo to micro-, small and medium-sized enterprises (MSMEs).
As of September 2013, Diamond Bank reported total assets of NGN 1.4 trillion (USD 8.4 billion), return on assets of 1.99 percent and return on equity of 20.32 percent. The African Guarantee Fund (AGF) was established in Kenya in June 2012 with initial capital sufficient to issue USD 50 million in partial loan guarantees. It has branches in nine African countries as of March 2013.
By Tejas Jain, Research Associate
About Diamond Bank PLC
Diamond Bank Public Limited Company (PLC) is a commercial bank that was established in Nigeria in 1990. Its mission is “to create a unique International Bank focused on providing creative solutions to customers’ business problems, with an absolute commitment to quality.” Diamond Bank operates in three business segments: retail banking, corporate banking and the public sector. Diamond Bank’s local subsidiaries are Diamond Securities Limited, Diamond Pension Funds Custodian Limited, Diamond Mortgages Limited and ADIC Insurance Limited. It also has subsidiaries in Benin, Côte d’Ivoire, Senegal, Togo and United Kingdom. As of September 2013, Diamond Bank Public Limited Company reported total assets of NGN 1.4 trillion (USD 8.4 billion), return on assets of 1.99 percent and return on equity of 20.32 percent.
About African Guarantee Fund (AGF)
The African Guarantee Fund (AGF) was established in Kenya in June 2012 with initial capital sufficient to guarantee USD 50 million in loans. Its goal is to increase financial inclusion for small and medium-sized enterprises (SMEs) in Africa. It provides partial financial guarantees to retail financial institutions to support loans, equity capital financing, and funds mobilization to client SMEs as well as capacity development support for SME financing. AGF is headquartered in Mauritius, but its operations are managed out of its Kenya office. It also has branches in nine other African countries as of March 2013.
Sources and Additional Resources:
Diamond Bank, “African Guarantee Fund Partners Diamond Bank to Support Small Businesses in West Africa,”
http://diamondbank.com/index.php/63-news/press-releases/522-african-guarantee-fund-partners-diamond-bank-to-support-small-businessesin-west-africa
MicroCapital, May 29, 2013, “Kenya-based Gulf African Bank, African Guarantee Fund Partner to Lend $1.2m to Small, Medium-Sized Businesses,”
https://www.microcapital.org/microcapital-brief-kenya-based-gulf-african-bank-african-guarantee-fund-partner-to-lend-1-2m-to-small-medium-sized-businesses/
MicroCapital, April 17, 2013, “MICROCAPITAL BRIEF: African Guarantee Fund (AGF) Guarantees $3.5m in Loans from Commercial Bank of Africa, Investments & Mortgages Limited to SMEs in East Africa,”
https://www.microcapital.org/microcapital-brief-african-guarantee-fund-agf-guarantees-3-5m-in-loans-from-commercial-bank-of-africa-investments-mortgages-limited-to-smes-in-east-africa/
MicroCapital, December 14, 2012, “Diamond Bank of Nigeria Introduces ‘Diamond-in-Motion’ Mobile Banking Truck,”
https://www.microcapital.org/microcapital-brief-diamond-bank-of-nigeria-introduces-diamond-in-motion-mobile-banking-truck/
MicroCapital Universe Profile: Diamond Bank PLC
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Diamond+Bank+PLC
MicroCapital Universe Profile: African Guarantee Fund
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=african+guarantee+fund
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