The Development Bank of Nigeria (DBN) has approved the disbursement of N1.6bn to LivingTrust Mortgage Bank Plc for on-lending to Micro Small and Medium-size entrepreneurs (MSMEs).
In a letter from DBN to the management of the mortgage bank, dated April 27, 2022, DBN said it had in March last year, disbursed the first tranche of the fund to the bank.
The letter with reference number DBN/LTMB/007/04/2022, and jointly signed by the Chief Operations Officer, Bonaventure Okhaimo, and Managing Director/Chief Executive Officer, Tony Okpanachi, notified LivingTrust of the upward review of its credit limit to N1.6bn for on-lending to prequalified MSMEs and small corporates.
“We are pleased to advise you that the Board of DBN has approved a review of your credit limit to N1,612,078,500.00 for on-lending to prequalified (MSMEs/small corporates).
“This commitment is however subject to the full satisfaction of the terms and conditions precedent to disbursement communicated in your previous offer, and the execution of a Supplementary Lending Agreement setting out the detailed terms of the loan to the end-borrowers,” the letter read in part.
The DBN’s Managing Director, Adekunle Adewole, while commenting said that the development was further to the appointment of LivingTrust as a partner bank for the development of the MSME sector by DBN on November 16, 2020.
“This development places LivingTrust among the few banks considered by DBN as possessing the requisite financial strength and governance structure to manage the MSMEs funds. There is no better pointer to our prudence in utilizing the funds earlier disbursed, than this enhancement.
“The partnership would further enable the bank to provide funding solutions in nurturing its growing MSME customer base,” he further noted,
He also disclosed that the bank; established in 2014 by the federal government, had disbursed various amounts to over 500 MSMEs since the commencement of the scheme last year.