IFC,FSDH sign $35m credit to support Nigerian SMEs
December 8, 2022209 views0 comments
By Cynthia Ezekwe
The International Finance Corporation (IFC), in partnership with Nigeria’s foremost merchant banking group,First Securities Discount House(FSDH),have approved a credit facility of $35 million ,which will be used to improve access to finance for small and medium-sized enterprises (SMEs) in Nigeria.
A statement by both organisations explained that the $35 million credit 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, while the GTFP which is a functional trade finance tool, will enable FSDH to support its numerous trade finance customers as it will give them have access to beneficiaries across the world.
GTFP will also help to reduce the trade finance gap in Nigeria by making financial resources available to small and medium-sized enterprises in the industrial sector.
Additionally, It will 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.
GTFP will also enhance foreign exchange in Nigeria, and allow confirmation of trade transactions originated by FSDH, benefiting local import and export businesses.
Commenting on the deal, Bukola Smith, managing director, FSDH Merchant Bank, assured that the company is committed to its mission of empowering businesses and partnering with them to achieve sustainable success.
“The IFC facility brings us closer to the actualisation of that mission,” Smith added.