Friday
December 9
2022

FSDH Merchant Bank Announces $35 Million Facility From International Finance Corporation to Boost Growth of Businesses in Nigeria

The International Finance Corporation (IFC), has approved a credit facility totalling US$35 million in partnership with FSDH, Nigeria’s foremost Merchant Banking Group, to be used to improve access to finance for medium-scale businesses in the emerging sectors of the Nigerian economy. The facilities are of two folds; $ 20 million Working Capital Solutions (WCS) and the Global Trade Finance Program (GTFP).

The WCS facility will help FSDH to provide loans to local enterprises in Nigeria especially those with foreign currency receivables. The GTFP is a functional trade finance tool that would enable FSDH to support its numerous Trade Finance customers as it will open them up to access any beneficiary across the globe. It will also help to reduce the trade finance gap In Nigeria by making financial resources available to small and medium-sized enterprises (SMEs) in the industrial sector. The GTFP will guarantee up to 100% of non-payment risks arising from letters of credit and similar trade finance instruments issued by FSDH under the guarantee portion. This will allow confirmation of trade transactions originated by FSDH, benefiting local import and export businesses. Since the pandemic, Nigeria continues to suffer significant foreign exchange constraints in the economy, and this deal will help to further ameliorate FX liquidity in the market.

Photo courtesy of Commonwealth Secretariat.

Source: Nairametrics (link opens in a new window)

Categories
Entrepreneurship, Finance
Tags
financial inclusion, innovation, MSMEs, women entrepreneurs