Ecobank Nigeria secures $125m funding facility

Ecobank Nigeria has secured a $75m facility (tier-2 capital) from Holland-based FMO

Entrepreneurial Development Bank and a $50m trade financing line facility from African Export-Import Bank.

Under the arrangement, the FMO Entrepreneurial Development Bank facility is for a tenor of seven years while that of Afrexim Bank is for a short term.

The Managing Director, Ecobank Nigeria, Mr. Jibril Aku, was quoted in a statement by the lender as saying, “These transactions will broaden and strengthen Ecobank Nigeria’s base as a lending bank.

“We are particularly encouraged by the response of the international markets, as it reflects confidence in our long-term growth plans.”

He added that the facilities would further increase the bank’s dollar liquidity, trade finance lines and also enhance its competitiveness.

He said, “We got these facilities at attractive rates. This, no doubt, will further increase our competitiveness in the financial space and also deepen our trade financing activities both regionally and locally.”

Aku noted that the readiness of the two international multi-lateral financial institutions to do business with the pan-African lender further attests to the respect the bank commands globally.

FMO is a Dutch development bank. It supports sustainable private sector growth in developing and emerging markets by investing in ambitious companies.

The financial institution believes a strong private sector will lead to economic and social development, empowering people to employ their skills and improve their quality of life.

It focuses on four sectors – financial institutions, energy, agribusiness, food and water.

The African Export-Import Bank is a multilateral financial institution established in 1993 by African governments, African private and institutional investors as well as non-African financial institutions and private investors for the purposes of financing and promoting intra and extra African trade.