The Arab Bank for Economic Development in Africa (BADEA), has extended $65 million credit facility to Nigeria’s Sterling Bank Plc.
The sum, which was granted through two loan agreements was signed in Cairo, Egypt. The Director-General, Dr. Sidi Ould TAH, signed on behalf of BADEA while Mr. Yemi Odubiyi, Executive Director, Corporate & Investment Banking signed on behalf of Sterling Bank.
Odubiyi, who commented on the loan, said the first tranche of $15 million is a line of credit for the financing of private sector projects, while the second of $50 million is for financing Arab exports to African importers, as part of BADEA’s programme for financing foreign trade.
The Executive Director expressed gratitude to the Arab Bank for having confidence in Sterling Bank, saying the first $15 million would help the bank finance private sector projects in Nigeria through on-lending to customers. He added that the two parties also signed a loan agreement to finance a line of credit that would be allocated to trade finance operations.
Ogunbiyi said the second $50 million loan is aimed at bringing Arab goods and products to Nigeria, through on-lending to beneficiaries in the country. This will also help to encourage and promote trade exchanges between Arab and African countries, thereby helping the growth of Arab exports in sub-Saharan Africa.
Dr. TAH described the agreement as the beginning of cooperation between BADEA and Sterling Bank. He said the cooperation would enhance the role of the private sector in Nigeria’s economic and social development by contributing to the mobilisation of production and service sectors.
BADEA’s Director-General also noted that the agreement will aid the creation of job opportunities in support of Nigeria’s budget through tax revenues, which will accelerate economic growth, and improve the standard of living of the people.