Proparco provides €5M guarantee to Wema Bank for Nigerian MSMEs

Financing Green Finance announced Nigeria Feb 23, 2026

EUR5B

Deal Value

Proparco has provided a NGN 9 billion (around €5 million) portfolio guarantee to Wema Bank in Nigeria. The guarantee, covering 50% of potential losses, will allow Wema Bank to develop a loan portfolio of NGN 18 billion (approximately €10 million) over two years to support micro, small, and medium-sized enterprises (MSMEs).

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Counterparts (2)

borrower

Wema Bank

company

Wema Bank is a Nigerian commercial bank that provides financial services to individuals and businesses. They have shown interest in supporting infrastructure projects through lending and financing.

Lender

PROPARCO

company

PROPARCO is a Development Finance Institution (DFI) that invests in private sector projects in developing countries and emerging economies. It focuses on projects that contribute to sustainable development goals, including infrastructure, renewable energy, and social infrastructure.

Deal Analysis

Proparco's €5 million portfolio guarantee to Wema Bank represents a targeted effort to bolster MSME financing in Nigeria. The guarantee, covering 50% of potential losses on a NGN 18 billion loan portfolio, aims to incentivize Wema Bank to expand its lending activities to this crucial sector. This financing structure allows Wema Bank to mitigate risk and extend credit to MSMEs that may otherwise face difficulty accessing capital. The deal is strategically important as it leverages Proparco's expertise as a Development Finance Institution (DFI) to unlock local lending capacity. By partnering with a Nigerian bank, Proparco can effectively channel funds to MSMEs, contributing to economic growth and job creation. The focus on green finance further aligns the investment with sustainable development goals, potentially supporting environmentally friendly business practices within the MSME sector.

Proparco, a reputable DFI, is providing a €5 million guarantee.
Wema Bank, a Nigerian bank, will develop a NGN 18 billion loan portfolio for MSMEs.
The guarantee covers 50% of potential losses, mitigating risk for Wema Bank.
The deal targets green finance, promoting sustainable business practices.

Source Intelligence

KEY DETAILS

The guarantee, covering 50% of potential losses, will allow Wema Bank to develop a loan portfolio of NGN 18 billion (approximately €10 million) over two years to support micro, small, and medium-sized enterprises (MSMEs). This marks the first collaboration between the two institutions.

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Deal Size

Proparco has provided a NGN 9 billion (around €5 million) portfolio guarantee to Wema Bank in Nigeria

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Location

Proparco has provided a NGN 9 billion (around €5 million) portfolio guarantee to Wema Bank in Nigeria

PARTIES MENTIONED IN SOURCE

Proparco lender

"Proparco has provided a NGN 9 billion (around €5 million) portfolio guarantee to Wema Bank in Nigeria"

Wema Bank borrower

"Proparco has provided a NGN 9 billion (around €5 million) portfolio guarantee to Wema Bank in Nigeria"

medium quality Enriched Feb 25, 2026

Timeline

Announced

Feb 23, 2026

Signed

Closed

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Source

news.fundsforngos.org

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