British International Investment

Stanbic IBTC Bank Plc

West AfricaFinancial services

Stanbic IBTC Bank PLC is a subsidiary of Stanbic IBTC Holdings PLC and member of the Standard Bank Group.

Our investment

Description of the investment.

We agreed a $75 million long-term debt commitment to Stanbic IBTC, to enable it to continue lending to businesses in critical sub-sectors of the Nigerian economy. These include those that are important for domestic consumption and exports including food, manufacturing, telecommunications and construction.

Impact information

Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.

What?

Impact
  • Improved economic opportunities through increasing the availability for trade finance for businesses (SDG 8.1, 8.5, 8.10).

  • Sustained and potentially improved access to goods and services, especially access to safe, nutritious and sufficient food all year round (SDG 1.4, 2.1).

How?

Primary Secondary

Economic enabler: Our loan will allow the bank to extend trade finance to businesses requiring US dollar denominated imports. This will sustain and potentially increase trade volumes within Nigeria given the current lack of US dollar liquidity available for importers to access.

Countries that are reliant on the import of consumption goods, e.g. staple foods and medicines, suffer from a lack of access, especially those on low-incomes who are least resilient and with the least access. This facility will lead to the importation of food, agricultural and economically productive goods.

Who?

Stakeholder Geography Characteristics
Owners and employees

Nigeria

Consumers

We can assume mass market characteristics.

How much?

Scale Depth/Duration

We use the total trade enabled by this facility as a proxy. We estimate $100 million of enabled trade through this facility.

Depth: 29 per cent of the bank's pipeline is comprised of wheat imports, a staple food ingredient which, in the context of Nigeria’s food crisis, may have a significant depth of impact for consumers.

Contribution/additionality

Contribution/additionality

Financial additionality: Our contribution is based on financial additionality given the current macroeconomic situation and the shortage of foreign exchange liquidity in the Nigerian market.

Risk

Evidence Risk
Alignment Risk

Impact score

Impact score (at point of investment)

The Impact Score is a tool to help us manage our performance against our strategic impact objectives. It is designed to incentivise investments that support our productive, sustainable, and inclusive objectives. You can find out more here.

The Impact Score is published for investments made from 2022 onwards. The Impact Scores are calculated at the point of investment. We publish the Impact Scores of new investments annually, once the information has been externally assured by an independent third party.

6

Environmental and social information

  • Environmental and social summary

    A high-level description of the environmental and social aspects of the investment. This may include a summary of key environmental and social risks identified during environmental and social due diligence (ESDD); key elements of an environmental and social action plan (ESAP); or ways in which we plan to support the investee improve environmental and social standards, such as through their environmental and social management system (ESMS); as well as any other priority areas agreed with the investee.

  • Environmental and social risk

    A risk category rating, which indicates the level of environmental and social risk associated with an investment. For an explanation of the categorisations used, see here. We consistently provide an environmental and social risk category for all investments screened from 2023 onwards.

Environmental and social summary

We assessed Stanbic's approach E&S risk management for trade finance and Human Resources policies and procedures. These were found satisfactory and no ESAP was required for the investment.

Environmental and social risk

Low

Reporting and Complaints Mechanism

The Reporting and Complaints Mechanism allows anyone outside BII to report alleged breaches of the business integrity or environmental and social provisions of BII’s Policy on Responsible Investing. This includes breaches made by BII, a BII investee, or a portfolio company of a fund in which BII has invested. The Reporting and Complaints Mechanism Rules are available here. Reports and complaints can be submitted by email to [email protected] or by mail. See more details on our Reporting and Complaints Mechanism here.

For any other general enquiries contact us at [email protected]

  • Key facts

    First published

    When the investment was first published on the website database.

    :
    March 2024
    Last updated

    When the last quarterly update of the website database occurred.

    :
    June 2024
    Project number

    An identifier number shared by investments in the same project.

    :
    D6292
    Status

    The current status of the investment (green flag for active and red flag for exited).

    :
    Active
    Region

    The geographical region where the country is located. We currently invest in Africa, South Asia, South East Asia and the Caribbean. In 2023, BII’s investment mandate was extended allowing it to invest in regional funds linked to Ukraine, with the majority of activity expected to begin post-war. Investments outside these regions were made prior to 2012 under previous investment mandates.

    :
    West Africa
    Country

    The countries where the investment delivers impact. Where impact is delivered in multiple countries, this is indicated.

    :
    Nigeria
    Sector

    We prioritise those sectors that facilitate development and need our capital the most. Our priority sectors contribute towards many of the Sustainable Development Goals. They range from investing in the power infrastructure that will provide people with better access to electricity, to investing in financial institutions that direct capital to the individuals and businesses that need it the most.

    :
    Financial services

    We provide capital in the following ways: directly – through direct equity, direct debt, guarantees and other non-intermediated financial instruments; and indirectly – principally through investment funds.

    For direct investments and fund investments, this is the date BII committed capital to the investments. This is typically the date on which legal agreements are signed by all parties.

    For the portfolio companies of our fund investments, this is the date (either the month or the quarter) on which the fund committed capital to the portfolio company.

    For direct equity investments, this is the date at which British International Investment exited the investment.

    For debt investments, this is the date at which the final debt repayment was made.

    For funds, this is the date at which the fund was terminated.

    For underlying fund investments, this is the date at which the fund manager exited the investment.

    The total amount committed, per financial instrument, per investment, on the date BII becomes subject to a binding legal obligation to provide funding or assume a contingent liability. This information is provided in US dollars.

    For direct investments, this is the amount that BII has committed to the business or project. For fund investments, this is the amount BII has committed to the fund.

    The currency in which the investment was made.

    Investment type :
    Debt
    Start date :
    December 2023
    Amount :
    $50m
    Currency of investment :
    USD
    Domicile

    The company or investment fund’s place of incorporation.

    :
    Nigeria
    2X Gender Finance

    Indicates whether the investment is ‘2X qualified’ using the 2X Challenge criteria. You can find out more here. It only applies to investments made from 2018 onwards, when the 2X Challenge was first launched.

    :
    Partially qualified

Related investments made by BII into this company:

Investment name Commitment Region Sector Start date Status
Investment 01 $75m West Africa Financial services September 2020 Active

Subscribe to receive our latest news and updates