Coronation Merchant Bank said it has gone into a partnership with the International Finance Corporation (IFC) to a launch a N14.4 billion Trade Finance Guarantee Facility.
The partnership is expected to boost financing for local businesses and enhancement of inter-continental trade.
IFC is a sister organisation of the World Bank and member of the World Bank Group. The organisation is the largest global development institution focused on the private sector in emerging markets. it works with more than 2,000 businesses worldwide, using their capital, expertise, and influence to create markets and opportunities where they are needed most.
“The partnership with Coronation Merchant Bank marks a major milestone for the Nigerian financial sector as it heralds the return of IFC to Nigeria.
“Since the last five years, IFC has not done any new enrollment under the GTFP in Nigeria following a break in the Nigerian market in 2015.
“The decision to partner with Coronation Merchant Bank is an attestation of the growth and development recorded in the Nigerian financial sector over the last few years.
“The gesture sends a positive signal to investors and other international financiers whilst positioning Coronation Merchant Bank as a foremost institution in Global Trade,” a statement explained.
According to IFC Regional Industry Head, Financial Institutions Group for Europe and Centra Asia, Vittorio Di Bello, “increasing access to trade finance for local businesses is an important mechanism to support the development of the private sector in emerging markets.
“We expect this financing to help boost inter-continental trade and spur economic growth for the region.”
Speaking at the launch of the event, the Acting Managing Director of Coronation Merchant Bank, Banjo Adegbohungbe said: “Empowering businesses that drive inter-continental trade remains pivotal to the sustenance of growth and development in emerging economies across the world. “International trade remains crucial to the economic make-up of Nigeria yet contributes little to our national GDP. We are determined to help change this narrative by boosting access to trade financing in Nigeria.”
He further stated that, “The partnership with IFC is the first for any financial institution in Nigeria since 2015 and attests to the positive strides the Bank has made in bridging infrastructure gap and facilitating inter-continental trade.
“As a bank, we will continue to pursue solutions to help local businesses thrive and expand into new markets.”