Union Bank Secures $40m IFC Facility To Boost Trade

The International Finance Corporation, IFC, has advanced a $40 million Finance Guarantee Facility to Union Bank Plc to to boost access to finance for local businesses.

The Bank in a statement on Friday disclosed that the facility was approved under the IFC’s global trade finance program (GTFP) and would ensure increased international trade for Nigeria and help protect the country’s economy from the impact of the COVID-19 pandemic.

According to the Lender the facility will assist in establishing 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.

The Financial institution also explained 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 the much needed foreign exchange.

The Chief Executive Officer, Union Bank, Emeka Emuwa said; “Union Bank is pleased to join the IFC’s global trade finance program (GTFP). This is a significant achievement as we continue to expand our trade financing offerings to our corporate customers”.

“Even in these peculiar times, we remain focused on contributing to economic growth by developing tailored solutions that help our customers to harness the teeming opportunities that still exist in the Nigerian market.”

IFC’s Country Manager for Nigeria,  Eme Essien Lore 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 program and value a partnership that will make a positive impact on Nigeria’s economy”.

IFC noted that the partnership reflects its growing commitment to Nigeria, with investments focused on sectors including healthcare, agribusiness, manufacturing, technology, and small and medium enterprises (SME) financing.