IFC, FSDH Sign $35m Deal To Support Businesses In Emerging Markets

The International Finance Corporation (IFC), has approved a credit facility totalling $35 million in partnership with FSDH which will be used to improve access to finance for medium-scale businesses in the emerging sectors of the Nigerian economy.

The facilities are of two folds; $20 million Working Capital Solutions (WCS) and the Global Trade Finance Program (GTFP).

The WCS facility will help FSDH to provide loans to local enterprises in Nigeria especially those with foreign currency receivables. The GTFP is a functional trade finance tool that would enable FSDH to support its numerous Trade Finance customers as it will open them up to access any beneficiary across the globe.

It will also help to reduce the trade finance gap In Nigeria by making financial resources available to small and medium-sized enterprises (SMEs) in the industrial sector.

The GTFP will guarantee up to 100 per cent of non-payment risks arising from letters of credit and similar trade finance instruments issued by FSDH under the guarantee portion. This will allow confirmation of trade transactions originated by FSDH, benefiting local import and export businesses.

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Since the pandemic, Nigeria continues to suffer significant foreign exchange constraints in the economy, and this deal will help to further ameliorate FX liquidity in the market.

The managing director, FSDH Merchant Bank, Bukola Smith said: “we are committed to our mission of empowering businesses and partnering with them to achieve sustainable success, the IFC facility brings us closer to the actualization of that mission. It avails us the right capital from a reputable partner at such a crucial time.”

Smith stated that, partnering with a credible, leading global funder like IFC is a boost for its credibility and viability as an institution, promising that, FSDH is well positioned and on course to reach various segments in the emerging economy through its different interventions in growing sectors, such as; health, agriculture, technology, renewable energy and the female economy.

To her, “our commitment is to the success of our clients, partners and ultimately, the growth of the economy at scale; we will not relent.”

She added that FSDH continues to deliver an excellent track record of innovative financial and investment solutions, providing a one-stop array of financial services to its customers.

Earlier this year, FSDH announced a N3.8 billion agreement with African Guarantee Fund (AGF) to scale up its business portfolio, this deal will further boost the bank’s credibility and enhance its customer base.

Also, the bank recently announced a $25 million Trade Finance Facility with African Development Bank to provide loan and import finance facilities to growing enterprises in Nigeria.