By David Akinmola
Amid persistent finding constraints facing Small-Scale Enterprises (SMEs), Advans La Fayette Microfinance Bank has raised N6 billion through its debut Commercial Paper (CP) issuance under a N20 billion programme, strengthening its capacity to expand credit to businesses and deepen financial inclusion.
The series one issuance, which was oversubscribed, marks the microfinance bank’s entry into the Nigerian capital market and reflects growing investor confidence in its governance framework, business model and growth prospects.
The funds raised are expected to strengthen the bank’s funding base, diversify its financing sources and provide additional liquidity to support lending to Micro, Small and Medium Enterprises (MSMEs), a sector widely regarded as a key driver of employment, innovation and economic growth.
Speaking at the signing ceremony held in Lagos, the Managing Director/Chief Executive Officer,Advans La Fayette Microfinance Bank, Elvis Kwabena Oheneba, described the transaction as a strategic milestone that would support the institution’s long-term growth ambitions.
According to him, the successful issuance demondtrates investor cobfidence in the bank’s operations and reinforces iys commitment to expanding access to finance for unswevwed businesses and households.
“Today represents more than the execution of a financing transaction. It is a strong statement of confidence in our institution, our strategy, our governance framework and our long-term ambition to deepen financial inclusion while building a stronger and more sustainable financial institution “he said.
Oheneba noted that the commercial paper programme would provide a platform for the bank’s next phase of expansion while supporting sustainable business growth through prudent risk management, operational efficiency and responsible lending.
A;so speaking, Non- Executive Director of the bank, Rukaiyat EI-Rufai, said the initiative would held address the financing challenges faced by many Nigerian SMEs despite their significant contribution to economic development.
She said the programme would enable the institution to increase support for businesses that drive productivity and job creation while promoting financial inclusion among underserved segments of the economy.
Industry analysts said the successful issuance highlights increasing investor appetite for quality debt instructments and underscores the growing role of the capital market in supporting financial institutions seeking alternative funding sources to expand lending activities.
The development comes at a time when access to affordable financing remains one of the biggest challenges confronting SMEs, with many businesses struggling to secure capital needed for expansion and operational growth.
Market observers noted that the successful launch of the commercial paper programme is expected to enhance the bank’s capacity to support inclusive economic growth while contributing to efforts aimed at improving access to finance across the country.
