By Adedapo Adesanya
Nigerian agribusiness company, Johnvents Industries Limited, is the recipient of the African Export-Import Bank (Afreximbank) $40 million pre-export facility in Houston, United States at the recently concluded Fidelity International Trade and Creative Connect (FITCC).
The facility term sheet was signed on behalf of Afreximbank by Mr Kanayo Awani, Executive Vice President, Intra-African Trade Bank; Mr John Alamu, Chief Executive Officer, Johnvents Industries Limited; and Mrs Nneka Onyeali-Ikpe, Managing Director of Fidelity Bank Nigeria PLC.
The term sheet provides for the facility to be used to finance commodities that had been received into approved warehouses or storage sites, to be processed into finished products for the export market.
It further provides that the facility, which is an uncommitted revolving pre-export facility, could be availed to finance commodities in transit to the warehouse, with such financing supported by a standby letter of credit or guarantee posted by Fidelity Bank Nigeria PLC.
The signing of the term sheet was part of activities organised to mark the Fidelity International Trade and Creative Connect hosted by Fidelity Bank Nigeria PLC to promote Nigeria’s value-added exports in the global marketplace.
Speaking at the event, Mrs Onyeali-Ikpe said, “We are delighted to participate in the tripartite loan signing ceremony as it demonstrates the size of the opportunity in the Nigerian cocoa market and its potential to meet the demand of off-takers in the US.
“The ceremony also highlights the value of our partnership with Afreximbank especially in providing much-needed credit to last-mile beneficiaries to upscale their operations and cater to a global market.
“These align with our objectives for FITCC and we are thrilled to host the formal deal signing event here.”
Tagged FITCC Houston, the two-day event, held this week, sought to increase the pipeline of Nigerian businesses that export into the US market, providing the diaspora market with more ethnic product options and enabling exporters to build capacity to improve product quality and meet international standards.
Modupe Gbadeyanka