|Approval Date||22 Jul 2009|
|Signature Date||15 Mar 2010|
|Sovereign / Non-Sovereign||Non Sovereign|
|DAC Sector Code||24030|
This intervention involves a $ 50 million priority loan in the form of an Emergency Liquidity Facility (ELF) in Zenith Bank Plc, Nigeria. The proposed loan aligns with the Bank's strategic response to the financial impact of the global crisis. It aims at revamping the client’s liquidity to cushion the effects of the financial crisis and lessen potential funding disruptions to vital ongoing projects in the infrastructure and industrial sectors. Currently, Zenith has a pipeline of projects at various stages of implementation totaling USD 106 million in the power, telecoms, transportation, and agribusiness sectors. These projects run the risk of severe delays (with serious financial implications) or possible termination due to the financial crisis which has resulted in commitment cancellations, commercial lenders retreating, and liquidity evaporating from the banking system. The loan will be used to part finance Zenith’s pipeline of subprojects in key sectors of the Nigerian economy.
The main objective of the intervention is to ensure the availability of scarce USD liquidity to enhance the operational resilience of Zenith in the wake of the finance crisis and minimize potential disruptions to the financing of infrastructure and industrial projects. The loans will help to both save and create jobs, boost personal incomes and government tax revenues, and sustain poverty reduction efforts, as well as facilitate the national development agenda.
The main beneficiary of the project is Zenith Bank Plc (Nigeria).
African Development Bank
|Last Update||20 Jun 2021|