$25 Million Guarantee-Backed Funding Secured for a Tier 2 Nigerian Bank

  • Overview

Woodhall Capital successfully arranged a $25 million guarantee-backed funding facility for a Tier 2 Nigerian bank, leveraging a partnership with a Multilateral Bank and Abu Dhabi Commercial Bank. The transaction aimed to strengthen the bank’s capital position, support its growth strategy, and enhance its ability to extend credit to customers in an increasingly competitive market. This funding marked a significant step for the Nigerian bank in boosting its liquidity and expanding its financial services.

Challenges:

The Nigerian bank faced challenges in accessing competitive funding due to its Tier 2 status, which limited its options for raising capital. Additionally, the bank needed to meet stringent regulatory requirements and navigate the complexities associated with securing a guarantee-backed facility from international financial institutions.

Solutions:

Structured the transaction to include a guarantee from a Multilateral Bank, which helped mitigate credit risk and attracted international lenders.

Engaged with Abu Dhabi Commercial Bank to secure competitive terms for the funding facility, ensuring favorable pricing and conditions for the client.

Provided advisory services to align the transaction with regulatory requirements, facilitating a smooth approval process.

Delivered guidance on optimising the use of the funding to maximise capital efficiency and support the bank's growth objectives.

Outcome:

The $25 million guarantee-backed funding was successfully raised, enabling the Tier 2 Nigerian bank to strengthen its capital base and enhance its capacity to offer credit. The facility’s favorable terms provided the bank with a competitive advantage in the market, supporting its strategic growth initiatives.

Impact:

The transaction underscored Woodhall Capital’s expertise in structuring innovative funding solutions for financial institutions in emerging markets. It also contributed to the Nigerian bank’s financial stability and ability to expand its lending activities, ultimately fostering economic development and supporting businesses in Nigeria. The collaboration with the Multilateral Bank and Abu Dhabi Commercial Bank demonstrated the value of strategic partnerships in achieving funding objectives for institutions with limited access to international capital.

* We uphold the highest standards of client confidentiality. While specific details remain undisclosed, the outcomes and achievements are fully substantiated.

$5b
Raised since inception
99%
on-time completion
100%
Client Retention rate
30+
Deals Completed and counting
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