FirstRand investment banking division Rand Merchant Bank (RMB) officially opened RMB Nigeria in Lagos, Nigeria, following the granting of an investment banking licence by the Central Bank of Nigeria.

RMB had been operating in Nigeria from a representative office since January 2010 and was already a player in the Nigerian investment banking sector.

RMB CE Alan Pullinger said on Thursday that the establishment of RMB Nigeria, which required an initial capital investment of $100-million, allowed it to rapidly build its franchise, provide products and services to corporate and institutional clients, as well as employ bankers in the country.

“Although we have already established a track record through our representative office, this enables us to significantly scale up our in-country offerings and play a more prominent role in the growth of the Nigerian economy,” he commented.

FirstRand CE Sizwe Nxasana added that the establishment of RMB Nigeria was in line with FirstRand’s strategy to build a presence in high-growth African markets with attractive long-term prospects.

“This move is consistent with our objectives, as we often enter a new market through the appropriate operating franchise, in this case RMB.  Nigeria currently offers strong growth prospects, particularly with regard to corporate and investment banking,” he said.

RMB Nigeria would provide a full spectrum of investment banking services to all industries, including corporate advisory, equity capital markets, infrastructure, project finance, resource finance, structured trade and commodity finance, as well as fixed income, currency and commodity services.

Its services would be available to large local, regional and international corporates operating in or entering Nigeria and the broader West African economies.

RMB had already concluded several deals in Nigeria, including a $50-million ExxonMobile Nigeria transaction, a $40-million Conoil deal, as well as a $50-million transaction for Africa Finance Corporation.

It had also acted as co-financial adviser for the $350-million Lekki Epe Expressway in Lagos.

RMB Nigeria CE Michael Larbie said the company’s knowledge of local financing requirements and legal and jurisdictional frameworks, together with the expertise and balance sheet of FirstRand, would enable the bank to service the rapidly expanding Nigerian economy.