James Emejo
24 July 2009
Lagos — The African Development Bank (AfDB) has granted two Nigerian banks - United Bank for Africa (UBA) Plc and Zenith Bank Plc - a $200 million facility under its Trade Finance Initiative.
While UBA got $150 million, which represents the largest commitment to a single bank in Africa by the regional development finance organisation, Zenith Bank secured $50 million.
The facilities, which were approved by the AfDB Board of Directors last Wednesday, according to AfDB, was in recognition of the duo's "ability to support private and public enterprises across the African continent".
In addition to the provision of short-term credit for import and export finance, the funds from UBA's facility, according to its officials, would be utilised to support trade activities using the bank's network across the continent.
To fast-track economic development and boost liquidity, the AfDB said it was offering two Emergency Funding Initiatives to banks: the Emergency Liquidity Fund (ELF) and the Trade Finance Initiative (TFI), which together are expected to inject a total of approximately $2.5 billion in fresh liquidity into African banks in 2009 and beyond.
The AfDB also lent Gabon $71 million to finance an education and vocational training scheme.
Other banks that had previously secured the AfDB line of credit include Access Bank Plc, Citibank and Fidelity Bank Plc.
UBA is one of Africa's leading financial institutions offering banking services to more than seven million customers across 750 branches in 19 African countries.
With its presence in New York, London and Paris, UBA is connecting people and businesses across Africa through retail and corporate banking, innovative cross border payments, trade finance and investment banking.
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