On behalf of their respective institutions, Aloysius Uche Ordu, Vice President, Regional and Country Programs and Policy from the African Development Bank (AfDB) and Faith Tuedor-Matthews, Deputy Managing Director, from the United Bank for Africa Plc (UBA) signed today, 16 December 2009 two loan agreements for a total of USD 150 million.
The loan agreements were signed under the AfDB Emergency Liquidity Facility (ELF), and Trade Finance Initiative (TFI) designed for the rapid injection of liquidity into African markets via strong private sector partner institutions.
These are the largest facilities to date, granted by the AfDB to a private sector financial institution in Africa.The TFI loan totaling USD 100 million will be used by UBA to advance trade credits to corporate customers across its pan-African network, enabling it fill the gap left by the retreat of non-African institutions from the market. This loan will permit UBA to significantly ramp up its intra-African corporate banking operations and specifically the promotion of regional trade. The ELF of USD 50 million also approved by the AfDB will enable UBA to play a catalytic role in supporting corporate projects, infrastructure and SME financing across Africa.
Speaking at the ceremony, AfDB Vice President, Aloysius Uche Ordu, stated that "Regional commercial banks such as the United Bank for Africa have an important role to play in accelerating Africa's economic growth, social development and economic integration of our nations". VP Ordu continued by saying that "the AfDB is committed to supporting these institutions with comprehensive assistance. We hope that this support will go a long way in strengthening and enhancing UBA's ability to impact its pan African operations".
These transactions are consistent with the AfDB's initiatives formulated in response to the Global Financial Crisis, its Country Strategy Paper for Nigeria as well as the Nigerian Government's millennium development agenda. This financial assistance to UBA also fits with the AfDB's Private Sector strategy to support sound and capable financial institutions during the financial crisis.
Also speaking at the signing ceremony, the Deputy Managing Director of UBA, Faith Tuedor-Mathews said "the support from the African development bank will further enhance UBA's ability to service its customers across the African continent. Coming at a time of severe credit constraints globally, this deal which represents the single largest commitment to a financial institution in the continent is a major recognition of UBA's ability to support private and public enterprises across Africa".
About AfDB
The African Development Bank (AfDB) is the premier development finance institution that is dedicated to combating poverty and improving living conditions across the continent. The AfDB is also engaged in mobilizing resources for the economic and social progress of its Regional Member Countries (RMCs). The Bank's mission is to promote economic and social development through loans, equity investments and technical assistance.
About UBA
United Bank for Africa Plc is one of Africa's leading financial institutions offering banking services to more than 7 million customer accounts across 750 branches in 19 African countries. With 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.
Contacts
Onike Nicol-Houra
