African Export-Import Bank (Afreximbank) has provided a US$10 million trade finance facility to Nigeria’s Parallex Bank Limited (Parallex Bank). The financing is deployed under Afreximbank’s Trade Facilitation Programme (AfTRAF) which is part of the Bank’s strategy to assist African banks to enhance and complement existing trade finance lines.
The US$10 million financing facility will be used by Parallex Bank to facilitate, through on-lending, access to cross-border trade finance for small and medium-sized enterprises (SME), and to create lines of credit for businesses operating in the agriculture, export industry, health, education, and renewable energy sectors. The funds will also support other pan-African business opportunities for Parallex Bank’s growing SME segment, as well as for emerging commercial and corporate banking businesses.
Professor Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, commented: “We are pleased to continue to expand the AfTRAF program across Africa. This financing facility provided to Parallex Bank comes in addition to other trade facilities already in use by our other partner banks in Nigeria and throughout the continent to help bridge the financing gap created by the withdrawal of international correspondent banks.”
Mr. Olufemi Bakre, the MD/CEO of Parallex Bank, said: “This facility underscores the confidence that Afreximbank has in Parallex Bank. It helps us to materialize our strategy of building ecosystem partnerships to support critical sectors of Nigeria’s economy for growth and development. We will engage in product-based collaborations to increase transaction mileage in specific and strategic segments, such as the creative industry, and women-owned and managed businesses, among others. Parallex Bank remains committed to promoting business growth in Africa and contributing to the development of the continent.”
In addition to the US$10 million trade finance facility, Afreximbank will provide Parallex Bank with technical assistance in capacity development and other training programs geared towards solidifying the relationship between the two institutions.