Finnfund, a Finnish development finance company and impact investor, has provided a US$10 million senior loan to First National Bank Ghana Ltd. One of the key objectives of Finnfund’s investment is to support the Ghanaian financial sector and the growth of small and medium-sized enterprises (SMEs), and in particular, foster affordable housing in the country.
According to estimations, Ghana is facing a shortage of approximately 2 million homes against a population of 30 million. First National Bank Ghana (FNB Ghana) recently acquired GHL Bank, which is one of the market leaders in the Ghanaian mortgage market and the only lender serving all segments of the market.
The loan is part of a debt package which is syndicated by DEG, a German development financier. “The recent acquisition of GHL Bank positions FNB Ghana strongly to utilise this debt package to achieve both Finnfund’s investment objectives and FNB Ghana’s strategy to scale home ownership in the country,” said Dominic Adu, FNB Ghana CEO.
“Particularly now, in the midst of the coronavirus pandemic, we want to strengthen the Ghanaian financial sector. This debt package provides additional capacity to FNB Ghana to accelerate the development of the mortgage market in the country,” said Senior Investment Manager, Jussi Ahonen at Finnfund.