By Modupe Gbadeyanka
A 10-year term credit facility of up to $200 million has been secured by Union Bank of Nigeria Plc to support Small and Medium Enterprises (SMEs) and funding for women-led businesses in the country.
The funding package was obtained by the lender through a partnership with sub-Saharan Africa financial services group, Atlas Mara Limited, in agreement with Overseas Private Investment Corporation (OPIC), the United States government’s development finance institution.
It was explained by Union Bank that the credit facility would be used for investments in digitization, on-lending to small business owners as well as female entrepreneurs as part of OPIC’s 2X Women’s initiative which aims to catalyse $I billion for investment in women across developing nations.
This initiative by OPIC is in line with the local bank’s long-standing commitment to enabling enterprise and empowering women-owned businesses through its Alpher (α), a dynamic proposition aimed at uplifting women across all segments of the Nigerian society through capacity building opportunities, networking platforms, scholarships and tailored financial services for women.
Last year, Union Bank also introduced an innovative business acceleration programme called Start up Connect, which enables Nigerian businesses creating technology-based solutions to be more competitive in the rapidly expanding African technology market.
The old generation financial institution has been steadfast in providing innovative services where SMEs can access up to $20,000 per quarter for importation without opening Letters of Credit or Bills for Collection under the Form Q scheme.
Speaking on the funding milestone, CEO of Union Bank, Mr Emeka Emuwa, said, “We welcome this partnership with OPIC as we are well-positioned in Nigeria to further advance lending to key segments of the population, especially SMEs.
“The 10-year tenor of the OPIC facility provides flexibility to maximize impact across key sectors of the Nigerian economy as we continue to advance proven initiatives including those focused on women’s banking and financial inclusion.”
Acting President and CEO of OPIC, Mr David Bohigian, also noted that, “OPIC is delighted to partner with Atlas Mara and the team at Union Bank to drive inclusive lending in Nigeria.
“This funding benefits SMEs and women and will help serve the needs of underbanked and unbanked individuals and businesses while fostering entrepreneurship and economic development across Nigeria.”
