In a move aimed at easing persistent financing constraints facing micro, small and medium-scale enterprises (MSMEs), Advans La Fayette Microfinance Bank has raised N6 billion through its first-ever commercial paper issuance under a broader N20 billion programme.
The issuance, which was reportedly oversubscribed, marks the bank’s official entry into Nigeria’s capital market and signals growing investor appetite for well-structured microfinance instruments amid tightening credit conditions in the economy.
The funds raised are expected to strengthen the bank’s liquidity position, broaden its funding base, and support increased lending to MSMEs—widely recognised as a backbone of job creation, innovation, and grassroots economic activity.
“A Strong Statement of Confidence” in the Institution
Speaking at the signing ceremony in Lagos, the Chief Executive Officer of Advans La Fayette Microfinance Bank, Elvis Kwabena Oheneba, described the transaction as a defining milestone in the institution’s growth journey.
“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,” he said.
Oheneba explained that the commercial paper programme would serve as a foundation for the bank’s next phase of expansion, enabling it to scale operations while maintaining disciplined risk management and operational efficiency. He also stressed the importance of responsible lending as the bank grows its loan book.
Investor Confidence Signals Strong Market Reception
The oversubscription of the Series One issuance was interpreted by market participants as a sign of strong confidence in the bank’s governance structure, business model, and growth outlook, particularly at a time when financial institutions are seeking alternative funding channels beyond traditional deposits.
Analysts note that the successful debut highlights the increasing role of the Nigerian debt capital market in providing funding solutions for financial institutions seeking to expand credit delivery to underserved sectors.
MSME Financing Still a Key Economic Gap
A non-executive director of the bank, Rukaiyat eI-Rufai, said the initiative directly addresses long-standing financing challenges faced by MSMEs in Nigeria, despite their critical role in driving economic development.
She explained that improved access to funding would allow the bank to scale support for small businesses that contribute significantly to productivity and employment generation across the country.
According to her, the programme also reinforces the bank’s commitment to financial inclusion, particularly for underserved segments that continue to struggle with access to affordable credit.
Expanding Role of Capital Markets in Microfinance Growth
The transaction underscores a broader shift within Nigeria’s financial sector, where microfinance institutions are increasingly turning to the capital market to raise long-term funding.
By tapping commercial paper instruments, institutions like Advans La Fayette are not only diversifying funding sources but also positioning themselves to better support the real economy through expanded lending capacity.