Coronation Merchant Bank Limited has launched a N14.4 billion Trade Finance Guarantee Facility to boost the financing of local businesses and enhancement of inter-continental trade.
The bank said on Sunday in Lagos that the partnership was a major milestone for the nation’s financial sector as it heralds the return of International Finance Corporation (IFC) into Nigeria.
“Since the last five years, IFC has not done any new enrollment under the Global Trade Finance Project in Nigeria following a break in the Nigerian market in 2015,” the bank said in a statement.
The bank’s acting Managing Director, Mr Banjo Adegbohungbe, commended IFC for the partnership.
Adegbohungbe said that empowering businesses that drive inter-continental trade remains pivotal to the sustenance of growth and development in emerging economies across the world.
“International trade remains crucial to the economic make-up of Nigeria yet contributes little to our national GDP.
“We are determined to help change this narrative by boosting access to trade financing in Nigeria.
“The partnership with IFC is the first for any financial institution in Nigeria since 2015 and attests to the positive strides the bank has made in bridging infrastructure gap and facilitating inter-continental trade.
“As a bank, we will continue to pursue solutions to help local businesses thrive and expand into new markets,” he stated.
Also speaking, Vittorio Di Bello,said increasing access to trade finance for local businesses is an important mechanism to support the development of the private sector in emerging markets.
Bello, the IFC Regional Industry Head, Financial Institutions Group for Europe and Central Asia, also noted that the financing would boost inter-continental trade and spur economic growth for the region.
He stated that In 2019, IFC delivered more than 19 billion dollars in long-term financing for developing countries, leveraging on the power of the private sector to end extreme poverty and boost shared prosperity.
According to him, the decision to partner with Coronation Merchant Bank is an attestation of the growth and development recorded in the Nigerian financial sector over the last few years.
The gesture sends a positive signal to investors and other international financiers whilst positioning Coronation Merchant Bank as a foremost institution in Global Trade.
IFC is a sister organisation of the World Bank and a member of the World Bank Group.
The organisation is the largest global development institution that focuses on the private sector in emerging markets.
It works with more than 2,000 businesses worldwide, using their capital,expertise, and influence to create markets and opportunities where they are needed most. (NAN)
