The International Finance Corporation (IFC) in partnership with FSDH Merchant Bank has approved $35 million credit facility to support medium-scale businesses in the emerging sectors of the Nigerian economy.

The Managing Director, FSDH Merchant Bank, Bukola Smith, said in a statement in Lagos that the facilities were two-folds.

“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,” the statement said.

It also said that the facilities would 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 statement said the GTFP would guarantee up to 100 per cent of non-payment risks arising from letters of credit and similar trade finance instruments issued by FSDH under the guarantee portion.

This, it said, would allow confirmation of trade transactions originated by FSDH, benefiting local import and export businesses.

It said that the country had continued to suffer significant foreign exchange constraints in the economy, since the pandemic.

According to the statement, this deal will help to further ameliorate foreign exchange liquidity in the market.

The statement also said that IFC- a member of the World Bank Group, had established a leading position promoting private sector investment in Africa.

”In nearly six decades, the Group has invested more than $60 billion in African businesses and financial institutions, with a portfolio that currently exceeds $12 billion.

“With this deal, the IFC is supporting FSDH’s drive to scale Small and Medium Enterprise – SME financing in the country which according to a 2022 survey by the Small and Medium Enterprises Development Agency (SMEDAN), contributes up to 43.31per cent to Nigeria’s Gross Domestic Product,” it said.

The statement said the bank recently announced its operations in new segments – agriculture, technology funding solutions, healthcare financing, business banking, as part of FSDH’s commitment to further support growth of the emerging sectors.

It said the bank also launched a women in business desk that would give female-led and female-founded businesses access to finance, market network and mentorship under its flagship “Women in Business Initiative”.

“We are committed to our mission of empowering businesses and partnering with them to achieve sustainable success, the IFC facility brings us closer to the actualization of that mission. It avails us the right capital from a reputable partner at such a crucial time.

”Also, partnering with a credible, leading global funder like IFC is a boost for our credibility and viability as an institution.

“We are well positioned and on course to reach various segments in the emerging economy through our different interventions in growing sectors like health, agriculture, technology, renewable energy and the female economy,” it said.

The statement, therefore, said the banks would not relent in ensuring successes of its clients saying it was committed to its clients, partners and ultimately, the growth of the economy at scale.

It further said that FSDH had continued to deliver an excellent track record of innovative financial and investment solutions, providing a one-stop array of financial services to its customers.

It recalled that earlier this year, FSDH, announced a N3.8 billion agreement with African Guarantee Fund to scale up its business portfolio.

It said the deal would further boost the bank’s credibility and enhance its customer base.

Also, the bank recently announced a $25 million Trade Finance Facility with African Development Bank to provide loan and import finance facilities to growing enterprises in Nigeria. (NAN)

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