Finnfund provides US$10 million loan to First National Bank Ghana

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 Deutsche Investitions- und Entwicklungsgesellschaft (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 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.

Finnfund is a Finnish development financier and professional impact investor. We build a sustainable world by investing in responsible and profitable businesses in developing countries. Each year we invest 200–250 million euros in 20-30 projects, emphasising renewable energy, sustainable forestry, sustainable agriculture and financial institutions. Today Finnfund’s investments and commitments total about 957 million euros, half of them in Africa. The company has about 90 employees. 

First National Bank is a subsidiary of FirstRand Group of South Africa one of the biggest financial institutions in Africa with a full banking presence in South Africa, Namibia, Botswana, Eswatini, Lesotho, Nigeria, Mozambique, Zambia and Tanzania. First National Bank has 523 employees, 11 branches and 12 Agency Banking locations in Accra, Tema, Kumasi and Takoradi.