IFC Grants $35m Credit to FSDH For SMEs
As per the latest news, FSDH, Nigeria’s Merchant Banking Group has recently been granted a credit facility of $35m in association with the IFC (International Trade Finance)
The above-mentioned funding will be utilized to strengthen access to trade finance instruments for SMEs (Small-and-medium-sized enterprises) in the arising areas of the Nigerian economy.
A declaration highlighted that the facilities are of two folds including 20m Working capital solutions (WCS) and Global Trade Finance Program (GTFP).
It expressed that, “The WCS funding will help FSDH to give loans to local businesses in the country especially those who carry foreign currency receivables. On the other hand, GTFP is a functional trade finance tool that would empower FSDH to help its various trade finance customers as it will enable them to access any beneficiary across the globe.”
“It will likewise assist to reduce the trade finance gap in Nigeria by ensuring the on-time availability of financial resources to SMEs in the industrial sector. The GTFP will ensure up to 100% of non-payment risks arising from letters of credit & similar trade finance instruments issued by the bank under the guarantee criteria. ”
“This will permit affirmation of trade transactions initiated by FSDH, empowering local import & export businesses. Since the global pandemic, Nigeria keeps on experiencing huge foreign exchange restrictions in the economy, and this arrangement will help to further enhance FX liquidity in the market.”
The Managing Director, of FSDH Merchant Bank, Bukola Smith stated, “We are focused on our main goal of engaging organizations and collaborating with them to make economic progress, the IFC facilities are making us fulfill our goals.”