|Approval Date||27 Jun 2016|
|Signature Date||02 Dec 2016|
|Sovereign / Non-Sovereign||Non Sovereign|
|DAC Sector Code||24030|
This project is a three and a half years Line of Credit of up to USD 50 million to support FSDH Merchant Bank Limited (FSDH) to expand its provision of trade finance (TF) to indigenous firms in Nigeria. This facility will hence provide FSDH with a much needed source of stable funds (FX) to strengthen its trade finance capabilities. The facility will also enable FSDH establish a track record and a demonstration effect providing comfort to international banks to avail it more trade lines. The Bank’s support is also additional at a time when traditional sources of trade liquidity are constrained and major global banks are receding to their traditional and core markets. This TF facility will be availed to FSDH in two disbursements of USD 35 million and USD 15 million.
The project will support trade through indigenous firms and Nigerian SMEs in various sectors such as agriculture, pharmaceuticals, food processing and petrochemicals. It will foster financial sector development and help generate incremental tax revenue for the government through import duties and higher corporate profits.
The direct beneficiaries of the intervention are FSDH Merchant Bank Limited (FSDH), the Federal Government of Nigeria, as well as indigenous firms in Nigeria. The facility will benefit the Nigerian economy by easing mounting demand pressures for FX liquidity amid pervasive shortage of FCY liquidity in a time of declining national foreign exchange earnings currently faced by local enterprises for TF purposes.
African Development Bank
|Last Update||21 Oct 2020|