Deutsche Bank and Ecobank Nigeria Limited have announced the signing of a Memorandum of Understanding (MoU) to expand their trade finance relationship.
Under the terms of the MoU, according to local media reports, Deutsche Bank will provide export credit guarantee programme GSM-102 to Ecobank Nigeria.
“As a leading provider for GSM-102 business in Africa, and in close coordination with the Commodity Credit Corporation and the US Department of Agriculture’s Foreign Agricultural Service, Ecobank Nigeria will benefit from Deutsche Bank’s strong global and US footprint.” The reports said.
The reports added that the bank’s offering of a GSM-102 programme will guarantee credit to encourage financing of commercial exports of US agricultural products, while providing competitive credit terms to buyers.
According to the reports, Ecobank Nigeria will use irrevocable US dollar denominated letters of credit for the import of eligible agricultural products from the US. Deutsche Bank will advise, confirm and negotiate these letters of credit as well as provide post-shipment financing in accordance with the GSM-102 program regulations.
“We look forward to expanding our relationship with Deutsche Bank with the GSM-102 program,” the Managing Director at Ecobank Nigeria, Jibril Aku, said.
“Deutsche Bank’s export credit guarantee service will offer a simple and efficient way for our importers to access agricultural products in the US and strengthen economic and trade development in the region,” Aku said.
Ecobank Nigeria is a member of Ecobank, a leading independent pan-African bank. In 2011, Ecobank Nigeria acquired 100% of the shareholding in Oceanic Bank, creating the expanded Ecobank Nigeria Plc and making it one of the five largest banks in Nigeria.
On the other hand, Deutsche Bank provides commercial and investment banking, retail banking, transaction banking and asset and wealth management products and services to corporations, governments, institutional investors, small and medium-sized businesses and private individuals.