Nigeria’s Parallex Bank has received a $10 million trade finance facility from the African Export-Import Bank (Afreximbank).
This is to facilitate on-lending, access to cross-border trade finance for small and medium-sized enterprises (SME).
Dr Femi Bakre, Managing Director/Chief Executive Officer, Parallex Bank, said in a statement on Wednesday in Lagos.
He said that the financing, which is deployed under Afreximbank’s Trade Facilitation Programme (AfTRAF) was part of the Bank’s strategy to assist African banks to enhance and complement existing trade finance lines.
Bakre said that the finance would also be used to create lines of credit for businesses operating in the agriculture, export industry, health, education and renewable energy sectors.
The funds, he said, would support other Pan-African business opportunities for Parallex Bank’s growing SME segment, as well as for emerging commercial and corporate banking businesses.
“Ths facility underscores the confidence that Afreximbank has in Parallex Bank.
” It helps us to materialise our strategy of building ecosystem partnerships to support critical sectors of Nigeria’s economy for growth and development.
“We will engage in product-based collaborations to increase transaction mileage in specific and strategic segments, such as the creative industry, women-owned and managed businesses, among others.
”In addition to the US$10 million trade finance facility, Afreximbank will provide Parallex Bank with technical assistance in capacity development and other training programs geared towards solidifying the relationship between the two institutions,” Bakre said.
Professor Benedict Oramah, President/Chairman of the Board of Directors of Afreximbank, said the bank was pleased to continue to expand the AfTRAF programme across Africa.
” This financing facility provided to Parallex Bank comes in addition to other trade facilities already in use by our other partner banks in Nigeria and throughout the continent to help bridge the financing gap created by the withdrawal of international correspondent banks,” he said.
Parallex Bank remains committed to promoting business growth in Africa and contributing to the development of the continent.
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