|Approval Date||30 Sep 2022|
|Sovereign / Non-Sovereign||Non Sovereign|
|DAC Sector Code||24030|
The proposed facility is a USD 25 million Trade Finance (TF) Package consisting of: (i) a USD 15 million Trade Finance Line of Credit (TFLOC) to support SMEs and indigenous corporates and (ii) a USD 10 million Transaction Guarantee (TG) facility to support confirmation of trade finance transactions of FSDH. The TG Facility will allow the Bank to provide up to 100% guarantee to Confirming Banks (CBs) for the non-payment risk arising from the confirmation of letters of credit and similar trade finance instruments issued by FSDH. The TFLOC will have a tenor of 3.5 years and the TG will have a tenor of 3 years.
The facility will contribute to mobilizing significant financial resources for SMEs and local enterprises in manufacturing and industrial sector ultimately enhancing deepening of value chains and diversifying productive capacity and ultimately stimulating growth.
The main beneficiary is FSDH Merchant Bank Limited. The TFLOC will help to ease FSDH’s FX needs amid growing demand and inadequacy of trade lines. The facility will help raise FSDH profile and attract additional trade finance funding from international banks and others DFIs.
FSDH Merchant Nigeria Limited
African Development Bank
|Last Update||24 Mar 2023|