Nigeria’s tier-1 lender, Sterling Bank Plc, has secured a $65 million (about N23.4 billion) credit facility from the Arab Bank for Economic Development in Africa (BADEA). The fund was released through two loan agreements signed yesterday in Cairo, Egypt.
While Director-General, Dr Sidi Ould TAH, signed on behalf of BADEA, Yemi Odubiyi, Executive Director, Corporate & Investment Banking signed on behalf of Sterling Bank.
How the funds will be deployed
The loan will be released to the tier 2 lender in two trenches. The first tranche of $15 million is a line of credit for the financing of private sector projects, while the second tranche of $50 million is for financing Arab exports to African importers, as part of BADEA’s programme for financing foreign trade.
The second tranche of $50 million loans is aimed at bringing Arab goods and products to Nigeria, through on-lending to beneficiaries in the country. This, according to Odubiyi, will help to encourage and promote trade exchanges between Arab and African countries, thereby helping the growth of Arab exports in sub-Saharan Africa.
Speaking on the credit facilities, Dr TAH said the signed agreement is the beginning of cooperation between BADEA and Sterling Bank. He said the cooperation would enhance the role of the private sector in Nigeria’s economic and social development by contributing to the mobilisation of production and service sectors.
TAH stressed that the move to deploy the funds will aid the creation of job opportunities in support of Nigeria’s budget through tax revenues, which will accelerate economic growth and improve the standard of living of the people.
About BADEA and Sterling Bank
The Arab Bank for Economic Development in Africa (BADEA) is a financial institution owned by eighteen Arab countries members of the League of Arab States (LAS) which signed its Establishing Agreement on 18 February 1974. The Bank is an independent international institution, enjoying full international legal status and complete autonomy in administrative and financial matters. It is governed by the provisions of its Establishing Agreement and the principles of international law.
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On the other hand, Sterling Bank Plc is a tier 2 lender that provides various commercial banking services primarily to corporate and commercial enterprises, individuals, small businesses, partnerships, and others in Nigeria.