The Arab Bank for Economic Development in Africa (BADEA) has extended $65 million (about N23.4 billion) credit facilities to Sterling Bank Plc of Nigeria. The facilities were granted through two loan agreements signed on Monday in Cairo, Egypt.
Director General of BADEA, H.E. Dr. Sidi Ould TAH signed on behalf of BADEA while Mr. Yemi Odubiyi, Executive Director, Corporate & Investment Banking signed on behalf of Sterling Bank.
Commenting on the facilities extended to Sterling Bank, Mr. Odubiyi disclosed that the first facility, which amounts to $15 million, is a line of credit for the financing of private sector projects while the second facility, which amounts to $50 million, is a line of credit for financing Arab exports to African importers, as part of BADEA’s programme for financing foreign trade. He thanked the Arab Bank for Economic Development in Africa for having confidence in the Bank.
According to Mr. Odubiyi, the first line of credit would help the bank to finance private sector projects in Nigeria by re-lending its resources to customers. He further explained that within the same context, the two parties also signed a loan agreement to finance a line of credit that would be allocated to trade finance operations.
This second line of credit is aimed at bringing Arab goods and products to Nigeria by re-lending its resources to beneficiaries in the country. This will also help to encourage and promote trade exchanges between Arab and African countries in addition to defining African markets for Arab products, thereby helping the growth of Arab exports destined for Sub-Saharan Africa.
On his part, Dr. TAH described the loan signing 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. This will also aid the creation of job opportunities in support of Nigeria’s budget through tax revenues, which will accelerate economic growth and improve the living standards of the populace.
About Sterling Bank
Sterling Bank Plc is a full service national commercial bank in Nigeria. In more than 50 years of operations, Sterling Bank (formerly NAL Bank) has evolved from the nation’s pre-eminent investment banking institution to a fully-fledged commercial bank and completed a merger with four other banks – Indo-Nigeria Merchant Bank, Magnum Trust Bank, NBM Bank and Trust Bank of Africa – as part of the 2006 consolidation of the Nigerian banking industry.
The vision is to be the financial institution of choice while its mission is to deliver solutions that enhance stakeholders’ value.
The company commenced operations in 1960 as NAL Bank, the nation’s pre-eminent investment banking institution and following the indigenization Act of 1972, it became a government owned institution.
The Arab Bank for Economic Development in Africa (BADEA) was established pursuant to the resolution of the 6th Arab Summit Conference in Algiers in November 28, 1973 and it began operations in March 1975. The bank has since inception continued to promote Afro-Arab cooperation through variety of operational modalities and instruments guided by multi-years strategic plans.