Advans raises N6b through debut commercial paper issuance

Advans La Fayette Microfinance Bank has raised N6bn through its maiden commercial paper issuance under its N20bn Commercial Paper Programme, as the lender seeks to expand financing for micro, small and medium enterprises across the country.

The bank disclosed this, noting that the Series 1 issuance was oversubscribed, indicating strong investor confidence in its operations, governance structure and growth prospects.

The commercial paper issuance marks the bank’s debut in the Nigerian capital market and is expected to strengthen its funding base, improve liquidity and diversify its sources of funding.

Speaking during a signing ceremony held at the Lagos office of the Lead Issuing House, Anchoria Advisory Services Limited, Elvis Kwabena Oheneba,  managing director/CEO of Advans La Fayette Microfinance Bank, said the transaction represented a major milestone in the institution’s growth journey.

He stated that proceeds from the issuance would be deployed to support lending activities, particularly to MSMEs, which play a critical role in job creation and economic development.

According to him, the successful fundraising exercise demonstrates investors’ confidence in the bank’s strategy and long-term vision.

“Today represents more than the execution of a financing transaction. It is a strong statement of confidence in our institution, our strategy, our governance framework and our long-term ambition to deepen financial inclusion while building a stronger and more sustainable financial institution,” Oheneba said.

He added that the commercial paper programme would provide the platform needed to support the bank’s next phase of growth while strengthening its capacity to serve customers more effectively.

Also speaking, Rukaiyat El-Rufai, a non-executive director of the bank, said the programme would help improve access to finance for small businesses, many of which continue to face funding challenges despite their contribution to economic growth.

She noted that the initiative would enable the bank to provide greater support to businesses driving productivity, innovation and employment while promoting financial inclusion among underserved populations.

According to the bank, the successful issuance reinforces its commitment to broadening access to sustainable financing solutions and supporting inclusive economic growth in Nigeria.

Advans La Fayette Microfinance Bank, a member of the Advans Group, commenced operations in Nigeria in 2013 and provides financial services to individuals and small businesses through its branch network and digital platforms.