Global financial institution, United Bank for Africa has announced that it has secured a $175m facility from the Africa Development Bank Group to boost its support to the private sector, financing of infrastructure development and women-owned businesses.
In a statement issued by the lender on Monday, the facility consisted of $100m in long-term senior debt, $50m of trade finance medium-term senior debt and a $25m risk participation program.
It stated, “The long-term senior debt will enhance UBA’s capacity to finance projects in Nigeria in the key sectors of infrastructure, agriculture and related value chains, as well as manufacturing, energy, and SMEs. The facility will be complemented with technical assistance from the Affirmative Action for Women in Africa initiative to boost access to finance and technical assistance to women SMEs.
“The trade finance senior debt will provide UBA with much needed countercyclical dollar liquidity to support SMEs and local corporates involved in export-import related activities in the short to medium term. The unfunded Risk Participation Agreement aims to strengthen UBA UK’s role as regional confirming bank and by extension expand access to international markets for largely excluded African issuing banks.”
Speaking on the development, the AfDB’s Group Director-General for Nigeria, Lamin Barrow, said, “We are pleased to support UBA with this package, which aligns with four of the African Development Bank’s high five priorities namely Light up, and Power Africa, Feed Africa, Integrate Africa, and Industrialise Africa.”
The Group Managing Director, UBA, Oliver Alawuba, said “This facility will further deepen our support, which has been very considerable, to the critical sectors of Nigerian economy and especially to women-owned businesses and small and medium enterprises, which we consider as the engine of any country’s economic development.”
Credit: punchng.com
