Afreximbank Provides $10m Trade Line Facility To Parallex Bank

The 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.

President and chairman of Afreximbank, Professor Benedict Oramah, said, his bank was pleased to continue to expand the AfTRAF programme across Africa, adding that, this financing facility provided to Parallex Bank came in addition to other trade facilities already in use by its other partner banks in Nigeria and throughout the continent to help bridge financing gap created by the withdrawal of international correspondent banks.

Similarly, the MD/CEO of Parallex Bank, Mr. Olufemi Bakre, said, this facility underscores the confidence that Afreximbank has in Parallex Bank as it helps his bank to materialise its 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, 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,” he pointed out.

In addition to the US$10 million trade finance facility, Afreximbank will provide Parallex Bank with technical assistance in capacity development and other training programmes geared towards solidifying the relationship between the two institutions.