By Alex C
Ecobank Transnational Incorporated (ETI) and the African Development Bank have signed a $200m trade finance facility.
According to a statement by Ecobank, the facility comprises two components: a $100 million unfunded risk-sharing facility to bolster Ecobank’s capacity as an international confirming bank for trade transactions originated by issuing banks in Africa; and another $100m trade facilitation loan which will be used by Ecobank to provide trade finance support to local corporate bodies and Small and Medium Scale Enterprises in Africa.
Over a period of 3.5 years, the facility will support approximately $1.8bn of trade transactions in Africa, the statement added.
Mr. Albert Essien, Group Chief Executive Officer, Ecobank Group, said: “This facility will greatly support international and intra-regional trade in Africa. We look forward to an ever-deepening collaboration with the AfDB to provide vital trade finance support to promote regional integration and the development of SMEs across Africa.”
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