The Arab Bank for Economic Development in Africa (BADEA) has extended $65 million (about N23.4 billion) credit facilities to Sterling Bank Plc of Nigeria. The facilities were granted through two loan agreements signed yesterday in Cairo, Egypt.
Director General of BADEA, Dr. Sidi Ould TAH signed on behalf of BADEA while Mr. Yemi Odubiyi, Executive Director, Corporate & Investment Banking, signed on behalf of Sterling Bank.
Commenting on the facilities extended to Sterling Bank, Odubiyi disclosed that the first facility, which amounts to $15 million, is a line of credit for the financing of private sector projects while the second facility, which amounts to $50 million, is a line of credit for financing Arab exports to African importers, as part of BADEA’s programme for financing foreign trade. He thanked BADEA for having confidence in the bank.
According to Odubiyi, the first line of credit would help the bank to finance private sector projects in Nigeria by re-lending its resources to customers. He further explained that within the same context, the two parties also signed a loan agreement to finance a line of credit that would be allocated to trade finance operations.
This second line of credit is aimed at bringing Arab goods and products to Nigeria by re-lending its resources to beneficiaries in the country. This will also help to encourage and promote trade exchanges between Arab and African countries in addition to defining African markets for Arab products, thereby helping the growth of Arab exports destined for sub-Saharan Africa.
For his part, TAH described the loan signing agreement as 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.
This will also aid the creation of job opportunities in support of Nigeria’s budget through tax revenues, which will accelerate economic growth and improve the living standards of the populace.