The International Finance Corporation has approved a credit facility of $35m in partnership with FSDH, Nigeria’s Merchant Banking Group.
The facility is to be used to improve access to finance for medium-scale businesses in the emerging sectors of the Nigerian economy.
A statement said the facilities are of two folds; $20m Working Capital Solutions and the Global Trade Finance Program.
It stated that, “The WCS facility will help FSDH to provide loans to local enterprises in Nigeria especially those with foreign currency receivables. The GTFP is a functional trade finance tool that would enable FSDH to support its numerous trade finance customers as it will open them up to access any beneficiary across the globe.
“It will also help to reduce the trade finance gap in Nigeria by making financial resources available to small and medium-sized enterprises in the industrial sector. The GTFP will guarantee up to 100 per cent of non-payment risks arising from letters of credit and similar trade finance instruments issued by FSDH under the guarantee portion.
“This will allow confirmation of trade transactions originated by FSDH, benefiting local import and export businesses. Since the pandemic, Nigeria continues to suffer significant foreign exchange constraints in the economy, and this deal will help to further ameliorate FX liquidity in the market.”
The Managing Director, FSDH Merchant Bank, Bukola Smith, said, “We are committed to our mission of empowering businesses and partnering with them to achieve sustainable success, the IFC facility brings us closer to the actualization of that mission.”