The African Development Bank (AfDB) has approved US$200mn-worth of loans to Nigeria’s United Bank of Africa (UBA) and Zenith Bank. The facilities are aiming to fill the financing void as foreign currency lines to the banks shrink.
UBA will be granted a US$150mn loan, granted under the AfDB’s trade finance initiative, and it will be used to fund UBA’s trade finance operations, including short-term credit for import and pre-export finance.
UBA will use the loan to support trade finance activities in Nigeria, as well as in fragile post-conflict countries in West Africa, where UBA also operates.
Zenith Bank has secured a senior loan of US$50mn aimed at boosting the bank’s liquidity.
This loan is an example of the development bank’s efforts to provide urgently needed foreign currency resources projects that are at risk of being delayed or cancelled completely due to the economic crisis.
The AfDB has recently approved an emergency liquidity facility which aims to shore up the African private sector as international financial flows drastically reduce.
Last Updated July 24, 2009
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