The European Investment Bank (EIB) and ECOBANK Transnational Incorporated (ETI), last Wednesday, signed a ?50 million deal to part-finance the growth of the Ecobank Group.

EIB, the European Union's long-term lending institution, will support ECOBANK's expansion program, through the provision of stable long-term finance.

The project is fully consistent with the objectives of both institutions. It will foster regional integration in the financial sector through support to a dynamic African international banking group; enable the implementation of ECOBANK's retail strategy which will extend the availability of credit and financial services to a larger segment of the population in West, Central, Eastern and Southern African countries; and support private sector projects, particularly in the more difficult countries of the region, that the EIB cannot reach directly.

Commenting on the facility, ECOBANK Group's chief executive officer, Arnold Ekpe, said "it strengthens our commitment to bring ECOBANK to the citizens of our target countries. It will help us reduce costs and improve efficiency through the first Shared Service Centre in West and Central Africa.

The project will also help us achieve our dual mission which is, on the one hand, to build a World Class African Bank and, on the other hand, to contribute to the economic and financial integration of Africa."

Guus Heim, West Africa regional director for the European Investment Bank, said "It will assist the development of the borrower. It will also allow the EIB to support the financial sector in some of the post-conflict countries in which ECOBANK operates.

The project also aims at supporting ECOBANK's retail strategy, including investments in technology allowing for a lower overall cost of financial intermediation, which will ultimately allow the provision of financial services to poor or remote customers. At the same time, the project aims at fostering the development of ETI's private sector financial operations."