Afreximbank issues $10m trade finance facility to Parallex Bank for Nigerian SMEs
By Cynthia Ezekwe
African Export-Import Bank (Afreximbank) has provided a $10 million trade finance facility for Nigeria’s Parallex Bank Limited to support Small and Medium-sized Enterprises (SMEs).
The financing is deployed under the Afreximbank’s Trade Facilitation Programme (AfTRAF), which is part of Afreximbank’s strategy to assist African banks in enhancing and complementing existing trade finance lines.
Benedict Oramah, the president/chairman of the board of directors of Afreximbank, stated that Afreximbank was pleased to continue to expand the AfTRAF programme across Africa.
According to Oramah, the 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.
Femi Bakre, the managing director/chief executive officer of Parallex bank, explained in a statement that the financing deployed under the AfTRAF Programme was part of the bank’s strategies to assist African banks to enhance and complement existing trade finance lines.
He added that the funds would be used to create lines of credit for businesses operating in the agriculture, export industry, health, education and renewable energy sectors.
Bakre noted that the funds would support other Pan-African business opportunities for Parallex bank’s growing SME segment as well as for emerging commercial and corporate banking businesses.
“This facility underscores the confidence that Afreximbank had 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,’’ he said.
Bakre further disclosed that in addition to the $10 million trade finance facility, Afreximbank will provide Parallex Bank with technical assistance in capacity development and other training programmes geared towards solidifying the relationship between the two institutions.