MICROCAPITAL BRIEF: African Capital and Business Support (ACBS) Partners with Suisse Bank Plc and Smart Link to Provide $6.7m Line of Credit to Nigerian Microfinance Banks

Suisse Bank Public Limited Company, a private bank based in London, and Smart Link, an Information Technology (IT) consulting group based in Dubai, have signed a deal with African Capital and Business Support (ACBS), a Nigerian financial intermediary, to provide a NGN 1 billion (USD 6.7 million) credit line to Nigerian microfinance institutions (MFIs). According to Mr Bejamin Aduli, the vice chairman of ACBS, the first year of the four-year loans will be interest-free, however, a 9.5 annual percent interest rate will take effect thereafter. To access the credit line, each MFI must have 12 percent of the amount they are seeking on reserve and be majority held by nonprofit interests. Auditors from ACBS will regularly monitor the accounts of the MFIs.

The nature of Smart Link’s participation is not stated, but in April 2010 ACBS secured USD 400 million in funds for MFIs from Mainsail Trading Limited, an investment company based in Dubai, with a guarantee provided by Suisse Bank.

By Conner Brannen, Research Assistant

About African Capital and Business Support (ACBS):

African Capital and Business Support (ACBS) Limited is a Nigerian financial intermediary. It is the founder of the Mechanized Agricultural & Microcredit Investment Scheme (MAMCIS), an agricultural funding scheme for micro- and small-scale farmers in Nigeria. Through this scheme, ACBS has launched the Africa Investor Protector Programme (AIPP), a program to make USD 400 million available to microfinance institutions (MFIs) that are participating in the Mechanized Agricultural & Microcredit Investment Scheme (MAMCIS), an agricultural funding scheme for micro- and small-scale farmers in Nigeria. There is no financial data available for ACBS.

About Suisse Bank:

Suisse Bank Plc is a private bank based in London. It offers deposits, loans, payment services, currency exchange and other products and services. It was registered in November 2008. As of April 25, 2010, its authorized capital totals EUR 365 million, the equivalent of over USD 487 million.

About Smart Link:

Smart Link works in information technology (IT) consulting and systems integration across the Persian Gulf region and the Middle East. Its current focus is on enterprise resource planning (ERP) implementations, systems integration, internet security and e-communications. Smart Link is also involved in outsourcing IT professionals. It is based in the city of Dubai in the United Arab Emirates.

Sources and Additional Resources:

AllAfrica.com: “ACBS Extends Lifeline to Microfinance Banks,” by Clement Nwoji, July 1, 2010: http://allafrica.com/stories/201007010266.html

MicroCapital Universe Profile: Africa Capital and Business Support (ACBS): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Africa+Capital+and+Business+Support+%28ACBS%29+Limited

MicroCapital Universe Profile: Suisse Bank: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Suisse+Bank+Plc

MICROCAPITAL BRIEF: Africa Capital and Business Support (ACBS) Limited of Nigeria Secures $400m from Mainsail Trading Limited of Dubai to be Provided to Microfinance Institutions (MFIs) in Nigeria Via Subordinated Convertible Debentures (SCDs), April 27, 2010: https://www.microcapital.org/microcapital-brief-africa-capital-and-business-support-acbs-limited-of-nigeria-secures-400m-from-mainsail-trading-limited-of-dubai-to-be-provided-to-microfinance-institutions-mfis-in-nigeria-via/

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