AFDB APPROVES US$ 15M TRADE FACILITATION LOAN FOR UNIBANK.

Oct 23,2015 at 07:41 pm By Public Agenda

   AFDB APPROVES US$ 15M TRADE FACILITATION LOAN FOR UNIBANK.

  AFDB APPROVES US$ 15M TRADE FACILITATION LOAN FOR UNIBANK.

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 The African Development Bank (AfDB) has approved a US $15 million trade finance line of credit for uniBank (Ghana) Ltd. To enhance its capacity to finance small and medium enterprises (SMEs) and indigenous firms operating within the tradable sector in Ghana.

The facility, approved in Abidjan on Wednesday 14th October 2015, is a fully funded three-year trade facilitation loan which will be used by uniBank to support trade facilitation loan which will be used by uniBank to support trade finance instruments issued largely in favour of SMEs and indigenous firms in Ghana.

The project will help address critical market and demand for Trade Finance and dollar liquidity in Ghana by supporting trade for indigenous firms and SMEs in vital economic sectors such as non-traditional exports, agri-business, construction and light manufacturing. It will result in the provision of significant trade finance support to local businesses and SMEs in Ghana for longer tenors than generally available. Counting rollovers, the project is expected to facilitate approximately US $90 million of export-import related activity in intermediate and finished goods, raw materials and equipment to support economic growth.

AfDB’s additionality in the project stems from its ability to increase uniBank’s capacity to support trade by availing affordable medium-term liquidity support for on-lending to SMEs and indigenous firms in Ghana.

The majority of African banks have small capital bases which constrain their ability to obtain adequate trade limits from international confirming banks and to undertake sizeable transactions that have significant development impact.

The facility approved for uniBank aligns with AfDB’s Ten Year and Regional Integration strategies, and particularly with its Financial Sector Development Strategy which seeks to increase access to financial services for the underserved and deepen Africa’s financial systems.

It also aligns with the Bank’s Private Sector Strategy by contributing to the improvement of the investment and business climate in Ghana by supporting uniBank with medium-term trade finance.

UniBank is a mid-sized, indigenous Ghanaian bank registered and headquartered in Accra, Ghana. It has 37 branches located across 8 of Ghana’s 10 regions. UniBank is recognized by its peers as a leading provider of finance to the SME sector in Ghana and strong promoter of gender equality. It has total assets of about US $781 million and shareholders’ funds of US$72 million. As at August 2015, it ranked 8th out of the 30b banks in Ghana in terms of assets.

 

AFRICAN DEVELOPMENT BANK (AfDB).

DATE PUBLISHED: FRIDAY 23RD OCTOBER, 2015.

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  • Title:   AFDB APPROVES US$ 15M TRADE FACILITATION LOAN FOR UNIBANK.
  • Posted By: Public Agenda
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