Iraq’s Al Mansour Bank for Investment (MBI) has secured a €65mn trade finance facility with the European Bank for Reconstruction and Development (EBRD).
MBI, which was launched in 2006 and is majority owned by Qatar National Bank Group, aims to use the funds to expand its trade finance business and boost its correspondent banking network.
The EBRD is providing the facility via its Trade Facilitation Programme (TFP) and will offer the bank guarantees to cover political and commercial payment risks, as well as cash advances.
Through the facility, MBI will focus on increasing the availability of trade finance for micro, small and medium-sized enterprises.
“It will support trade across key sectors, including agriculture, construction, manufacturing and consumer goods, helping businesses access international markets and supply chains,” the EBRD said.
The multilateral development bank will also provide technical support, such as advisory support, specialised training and workshops on compliance, fraud prevention and risk management, it said.
The EBRD began operations in Iraq in September last year, and announced its first investment, a US$100mn trade finance facility for the National Bank of Iraq, in December.
Its focus in the country will be on improving access to finance through private-sector development, the promotion of local entrepreneurship and fostering sustainable long-term economic growth, the EBRD said.
Other recently announced financing under the TFP includes the bank’s first investment in Senegal, comprising a trade finance facility of up to €15mn for Ecobank Senegal as well as support for SMEs.
In April, the EBRD brought its limit up to US$10mn for a trade finance line provided to Palestinian lender Arab Islamic Bank as part of the TFP.
