The Netherlands Development Finance Company (FMO) has taken a 15 per cent equity stake in Guaranty Trust Bank (GT Bank) Ghana Limited.

The stake in the Ghanaian bank builds on a letter of credit (L/C) facility provided by FMO to the West African banking group just over two years ago.

International image

The 15 per cent FMO stake in the Ghanaian bank reduces GT Bank of Nigeria's holding in GT Bank Ghana to 70 per cent. Ghanaian financier and the bank's chairman Alhaji Ibrahim holds 15 per cent, according to a statement issued by the bank.

The new Ghanaian-Nigerian-Dutch partnership aims to enhance the bank's image as an international bank and boost its acceptability in the Ghanaian market, the statement added.

L/C facility

The FMO in 2004 granted a US$25 million facility to GT Bank Nigeria, enabling it to extend medium- to long-term funds and expand its capacity to open L/Cs for its clients.

GT Bank Ghana commenced operations in January 2006. Affiliates in the GT Bank group also operate out of Sierra Leone and Gambia as well as Nigeria where the bank was founded.

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