[NIGERIA] Afreximbank enhances financing facility for Fidelity Bank plc, from US$125 million to US$180 million

 

Afreximbank enhances financing facility for Fidelity Bank plc, from US$125 million to US$180 million

African Export-Import Bank (Afreximbank) has announced the enhancement of the financing facility provided to Fidelity Bank plc, Nigeria under the Afreximbank Trade Facilitation Programme (AFTRAF).

The decision to increase Afreximbank’s support is consistent with the economic and commercial success of the financing facility, the first US$125 million of which has been fully utilised by Fidelity Bank. The expansion to US$180 million was also bolstered by the continued strong financial performance of Fidelity Bank, Nigeria’s largest Tier 2 bank.
The augmented financing facility will allow Fidelity Bank to scale up and accelerate its activities and programmes in trade and related activities.

Professor Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, commented: “Fidelity Bank has proven its ability to make smart use of this type of financing, with consequent benefits for the Nigerian economy. Afreximbank is keen to support a leading African bank that supports African businesses and entrepreneurs.''

The Afreximbank Trade Facilitation Program enhances the confidence of counterparties in the settlement of international trade transactions and improves correspondent banking relationships. It supports critical imports into Africa, boosts intra-African trade and facilitates the purchase of equipment for the production of export goods. It provides trade confirmation services, trade confirmation guarantees and irrevocable reimbursement undertakings.

AFTRAF is designed to counter the recurring trend of reduction or withdrawal of trade lines to African banks by the international banks following the de-risking process. The program is offered to African financial institutions in response to the increasing de-risking of African banks as a result of the stringent compliance and regulatory requirements imposed by international banks.

It enables local banks to use the trade confirmation guarantee facility to expand their correspondent banking relationships.

www.afreximbank.com