Afreximbank Gives $200m Loan to Zenith Bank

By Adedapo Adesanya

The African Export-Import Bank (Afreximbank) has disbursed $200 million to a Nigerian tier-one lender, Zenith Bank Plc, under its Pandemic Trade Impact Mitigation Facility (PATIMFA).

This was made known in a statement by Afreximbank on Friday, in which it explained that the funds will assist Zenith Bank in its maintenance of foreign currency trade flows impacted by the COVID-19 pandemic.

It added that the fund will enable the bank to lend to eligible sub-borrowers involved in the manufacture and supply of medical resources needed to combat the COVID-19 pandemic.

Quoting the president of Afreximbank, Mr Benedict Oramah, the statement said, “PATIMFA is designed to support and stabilise the foreign exchange resources of African countries, enabling them to support critical imports under emergency conditions.

“We are pleased to contribute to keeping economies going, especially during this pandemic. The role that banks such as Zenith Bank play in Africa is huge.

“Supporting them to carry out their mandate is our greatest contribution to making sure that African countries and institutions build back better from the shocks of the pandemic.”

On the part of the lender, speaking on the disbursement, Mr Ebenezer Onyeagwu, the Group Managing Director and Chief Executive of Zenith Bank, was quoted as saying: “The Afreximbank facility undoubtedly underscores the confidence reposed in Zenith Bank.

“It will enable the bank to contribute to the fight against the COVID-19 pandemic by providing trade finance and foreign currency funding for the importation of urgent medical equipment and raw materials.”

PATIMFA was set up in March 2020 to provide financing to assist Afreximbank member countries, it is a three-year medium-term facility made available through direct funding.

The facility is to enable countries to adjust in an orderly manner to the financial, economic and health services shocks caused by the COVID-19 pandemic.

Under the PATIMFA, Afreximbank has already disbursed more than $3.5 billion.