The Development Bank of Nigeria has approved the disbursement of N1.6 billion to LivingTrust Mortgage Bank Plc for on-lending to micro, small and medium entrepreneurs.
In a letter from DBN to the management of the mortgage bank, dated April 27, 2022, DBN said that it had, in March last year, disbursed the first installment of the fund to the bank.
The letter bearing reference number DBN/LTMB/007/04/2022, and jointly signed by Chief Operating Officer, Bonaventure Okhaimo, and Managing Director/General Manager, Tony Okpanachi, informed LivingTrust of the upward revision to its credit limit at N1 0.6 billion for on-lending to pre-qualified MSMEs and small enterprises.
“We are pleased to inform you that the DBN Board of Directors has approved a revision of your credit limit to N1,612,078,500.00 for on-lending to pre-qualified (MSMEs/Small Businesses).
“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 loan agreement setting out the detailed loan conditions to end borrowers,” reads the letter. in part.
DBN Managing Director Adekunle Adewole said the development follows the appointment of LivingTrust as a partner bank for MSME sector development by DBN on November 16, 2020.
“This development places LivingTrust among the few banks considered by DBN to have the financial strength and governance structure required to manage MSME funds. There is no better indicator of our prudence in the use of funds disbursed earlier than this improvement.
“The partnership would further enable the bank to provide financing solutions to service its growing MSME clientele,” he added,
He also revealed that the bank; created in 2014 by the federal government, had disbursed various amounts to more than 500 MSMEs since the program was launched last year.
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