WED, FEBRUARY 20 2019-theG&BJournal-Arab Bank for Economic Development in Africa (BADEA) agreed Monday in Cairo, Egypt to invest $65 million in Nigeria’s Sterling Bank Plc, a further sign that the big regional development bank wants to have a significant presence in Nigeria’s banking sector.
Monday’s announcement follows an earlier deal between BADEA and Development Bank of the Central African States (BDEAC) to discuss cooperation between the two institutions in different development fields, especially, private sector operations, external trade finance and technical assistance operations. BADEA’s assistance to BDEAC to-date amounts to US $ 46.035 million to finance three line of credits, one operation for trade finance and four technical assistance operations.
The terms of BADEA’s investments include agreement to provide line of credit which amounts to US $15 million to finance private sector projects, and the second one, which amounts to US $50 million, is a Line of Credit for financing Arab Exports to African importers, as part of BADEA’s program for financing Foreign Trade.
H.E. Dr. Sidi Ould TAH, Director General, signed on behalf of BADEA, while Mr. Adeyemi Odubiyi, Executive Director, Corporate & Investment Banking, signed on behalf of Sterling Bank.
According to BADEA, the first Line of Credit aims to help the Bank to finance private sector projects in Nigeria by re-lending its resources to its customers. The loan also aims to enhance the role of the private sector in the country’s economic and social development, to contribute to the mobilization of the production and service sectors, creating job opportunities, providing and delivering various goods and services and supporting the country’s budget, through tax revenues, which will enhance opportunities for economic growth and improving the living standards of the population.
Within the same context, the two parties also signed a loan agreement to finance a Line of Credit that will be allocated to Trade Finance Operations. This Line of Credit aims to bring Arab goods and products to Nigeria by re-lending its resources to beneficiaries in the country. The Line also aims to encourage and promote trade exchanges between Arab and African countries and help to define African markets for Arab products, and thus help in the growth of Arab Exports destined for Sub-Saharan Africa.