Advans La Fayette Microfinance Bank has raised N6 billion through its maiden commercial paper issuance under a N20 billion programme, marking the institution’s entry into Nigeria’s capital market as it strengthens capacity to expand credit access for micro, small and medium enterprises.
The series one issuance was oversubscribed, reflecting growing investor confidence in the microfinance bank’s governance framework, business model, and growth prospects according to a statement from the institution.
Brandspur Banking News Desk understands that the funds raised will strengthen the bank’s funding base, diversify its financing sources, and provide additional liquidity to support lending to MSMEs, a sector widely recognised as a critical driver of employment, innovation, and economic growth across Nigeria.
Chief Executive Officer Elvis Kwabena Oheneba described the transaction as a strategic milestone that would support the institution’s long-term growth ambitions, reinforcing its commitment to expanding access to finance for underserved businesses and individuals.
The commercial paper programme provides a platform for the bank’s next phase of expansion while supporting sustainable business growth through prudent risk management, operational efficiency, and responsible lending practices.
Non-executive director Rukaiyat el-Rufai noted that the initiative would help address the persistent financing challenges facing Nigerian MSMEs despite their significant contribution to economic development, enabling the institution to increase support for businesses that drive productivity and job creation.
The successful issuance demonstrates investor confidence in the bank’s operations and reinforces its commitment to deepening financial inclusion among underserved segments of the Nigerian economy.
The microfinance bank’s entry into the capital market comes amid persistent funding constraints facing MSMEs across Nigeria, with the N6 billion injection expected to expand the institution’s capacity to provide credit to businesses that have traditionally struggled to access formal financing channels.
The oversubscription of the debut issuance suggests strong market appetite for microfinance sector instruments, potentially opening the door for similar institutions to explore capital market funding as an alternative to traditional bank borrowing.
The transaction is expected to support the bank’s efforts to extend financial services to underserved communities while contributing to Nigeria’s broader financial inclusion objectives and economic development agenda.
