Union Bank’s trade finance on-lending FX purse swells by $40m from IFC

UNION BANK OF NIGE RIA, the longstanding and respected lender, has seen its trade finance on-lending foreign currency purse swell by $40 million courtesy of the International Finance Corporation (IFC), the private sector arm of the World Bank Group.

The money is a global trade finance guarantee from the IFC that would enable the bank create opportunity of access to forex for local businesses and enable increases in international trade for Nigeria.

In a regulatory compliance statement to the Nigerian Stock Exchange signed by Somuyiwa Sonubi, the company secretary to the bank, the bank informed the general public, the exchange and shareholders that the facility will enable the continued flow of trade credit into the Nigerian market at a time when imports are critical, and the country’s exports can generate much-needed foreign exchange.

According to the financial institution, the $40 million facility, under IFC’s Global Trade Finance Programme (GTFP), will support Union Bank to establish working partnerships with nearly 300 major international banks within the GTFP network, thereby broadening access to finance and reducing cash collateral requirements for Nigerian businesses.

Emeka Emuwa, chief executive officer of Union Bank, commenting on the receipt of the facility from the multilateral lender said, “Union Bank is pleased to join the IFC’s Global Trade Finance Programme. This is a significant achievement as we continue to expand our trade financing offerings to our customers. Even in these peculiar times, we remain focused on contributing to economic growth by developing tailored solutions that help our customers harness the teeming opportunities that still exist in the Nigerian market.”

Also speaking on the new partnership, Eme Essien

Lore, IFC’s country manager for Nigeria, said, “Keeping trade moving is essential to growth and job creation, especially during the challenging economic times we are living through today. We welcome Union Bank to IFC’s Global Trade Finance Programme and value a partnership that will make a positive impact on Nigeria’s economy.”

The bank explained that its admission into the GTFP network underscores its focus on developing innovative channels to support Nigerian businesses, adding that in 2018, the bank introduced the Local Letter of Credit, a first-of-its-kind adaptation of the standard Letter of Credit which focuses on facilitating local trade.

Meanwhile, IFC’s partnership with Union Bank underscores IFC’s growing commitment to Nigeria, with investments, focused on sectors including healthcare, agribusiness, manufacturing, technology, and SME financing.