Access Bank Seeks $230m From AfDB To Boost FX Liquidity
Access Bank Plc is seeking a $230m trade financing facility from the African Development Bank (AfDB).
The facility is aimed at supporting Access Bank’s finance needs and provide foreign exchange liquidity to small and medium-sized enterprises (SMEs).
AfDB disclosed the funding in its Project Summary Note.
The facility is a $170m Trade Finance Line of Credit with a 3.5-year tenure.
The $750m will provide Access Bank with the needed FX liquidity to SMEs and corporate clients engaged in trade.
The second facility is a $60m Transaction Guarantee (TG) with a three-year tenure.
This would enable Access Bank to act as an Issuing Bank (IB) while the AfDB provides up to 100 per cent risk coverage to Confirming Banks (CBs) for trade transactions.
The AfDB document disclosed that trade finance facility will be implemented through two separate legal agreements governing fund disbursement, repayment terms, and environmental and social compliance measures.
The AfDB will seek the Central Bank of Nigeria (CBN) approval before disbursement.
It said the Transaction Guarantee (TG) component will be executed through an Issuing Bank Agreement between AfDB and Access Bank.
Access Bank Seeks $230m From AfDB To Boost FX Liquidity is first published on The Whistler Newspaper
