AIG Investments has announced an investment in Blue Intercontinental Micro Finance Bank, a joint venture between Nigeria’s Intercontinental Bank and Blue Financial Services aimed to distri
AIG Investments has announced an investment in Blue Intercontinental Micro Finance Bank, a joint venture between Nigeria’s Intercontinental Bank and Blue Financial Services aimed to distribute and sell micro-financing services and products into Nigeria’s retail market. The equity investment will be funded by AIG Global Emerging Markets Fund II.
Having earlier invested in both Intercontinental Bank and Blue Financial Services, AIG Investments has brought the two companies together to create Blue Intercontinental Micro Finance Bank.
‘We have built up our brand equity over 18 years in the market and are ranked as one of the fastest growing banks in the world and the fifth largest in Africa,’ says Dr Erastus Akingbola, group chief executive of Intercontinental Bank.
‘AIG Investments, our mutual shareholder, played an instrumental role in facilitating this new relationship, and we have benefited greatly by the strength of their network in Africa. Intercontinental Bank will provide Blue with our local partner expertise as well as a footprint of more than 300 branches across all [Nigerian] states.’
Blue Financial Services chief executive Dave van Niekerk says: ‘The venture will enable Blue to tap into the potential of a large market and leverage the progressive reforms in Nigeria’s financial services sector.
‘Although there are more than 25 banks in Nigeria, less than 10 per cent of their lending is to individuals, and what they do offer is a very limited product range. Consumers have been compelled to look to lenders in the informal financial sector such as non-governmental organisations, microfinance institutions, moneylenders, friends, relatives and credit unions.’
Andre Steyn, managing director and head of Africa private equity at AIG Investments, adds: ‘We are excited to further our partnership with Intercontinental Bank and Blue Financial Services to create a new institution that we believe will become the leading micro-financier in Nigeria. AIG Investments looks forward to expanding our presence in Africa and continuing to build strong relationships with local partners.’
AIG Investments, the asset management arm of American International Group, has capabilities in equity, fixed income, hedge fund, private equity and real estate investments through member companies that managed more than USD758bn in assets and employed some 2,100 professionals in 46 offices worldwide at the end of June.
