Afreximbank, UBA Sign $150m Deal to Finance Trade-related Transactions

By Adedapo Adesanya

The African Export-Import Bank (Afreximbank) and the United Bank for Africa (UBA) Plc have signed a $150 million trade finance facility agreement under the Ukraine Crisis Adjustment Trade Financing Programme for Africa.

The funding will be utilised to finance trade and trade-related transactions in support of UBA clients to facilitate increased financing of trade businesses in various sectors of the Nigerian economy to mitigate the adverse effects of the Russia-Ukraine crisis.

Signed by Mr Denys Denya, Executive Vice President, Finance, Administration and Banking Services, Afreximbank, and Mr Oliver Alawuba, Managing Director of UBA PLC, the facility is expected to enhance confidence in the settlement of international trade transactions for strategic imports.

According to a statement, this is one of financing and other agreements valued in excess of one billion Dollars agreed upon between the Cairo-based bank and several leading business entities from across the continent at the ongoing third Intra-African Trade Fair (IATF2023) which started last week and will conclude on Wednesday, November 15.

Anambra state was also a beneficiary as Afreximbank signed a mandate letter to provide capital raise financial advisory services to the South East state for an estimated $200-million facility to support the development of three major projects in the state, covering the Ikenga Mixed-Use Industrial City Project, the Anambra Export Emporium and the Akwaihedi Unubi Uga Automotive Industrial Park.

The bank also signed an agreement to provide the state government with financial advisory services for the development of operational and governance framework for the Anambra Diaspora Fund, including capital raise financial advisory services for the Anambra Intra-City Rail Master Plan project and the Anambra Diaspora Fund.

Mr Kanayo Awani, Executive Vice President of Intra-African Trade Bank, signed for Afreximbank while Mr Mark Okoye, Chief Executive Officer of the Anambra State Investment Promotion and Protection Agency, signed for the state government.