NIGERIA – IFC, a member of the World Bank Group, has partnered with Coronation Merchant Bank (CMB) to boost financing for local businesses in Nigeria.
Under the partnership, IFC will advance a US$40 million Trade Finance Guarantee facility to Coronation Merchant Bank under its Global Trade Finance Program.
This according to IFC, will enable Coronation Merchant Bank to establish and expand correspondent banking partnerships with several international banks in IFC’s Trade Finance program, broadening access to finance in Nigeria.
IFC’s Global Trade Finance Program (GTFP) will offer confirming banks full or partial guarantees to cover the trade-related payment obligations of Coronation Merchant Bank, IFC explained in a statement.
The statement further noted that the GTFP program supports trade with emerging markets worldwide, allowing participants conveniently finance their imports and exports.
This according to the IFC, promotes the flow of goods and services between developing countries.
“The GTFP partnership is a critical milestone for us in our journey to become a leading financial institution in Nigeria,” Banjo Adegbohungbe, Acting Managing Director of Coronation Merchant Bank said.
“We are delighted to partner with the IFC in providing trade finance solutions to our customers and we assure all our clients of our continued support to enable them achieve their business objectives.”
On his part, Kevin Njiraini, IFC’s Director for Southern Africa and Nigeria said, “We welcome Coronation Merchant Bank to the Global Trade Finance Program, which has been very active in Nigeria in the past.”
“This relationship will help improve the bank’s trade with other countries and create new economic opportunities in Nigeria.”
For the last five years, IFC has not done any new enrolment under the GTFP in Nigeria, following a break in the Nigerian market in 2015.
The partnership, therefore, attests to the continued growth of the Nigerian financial sector and restates IFC’s commitment to emerging markets around the world.
IFC is a development institution focused on the private sector in emerging markets.
It works with more than 2,000 businesses worldwide, using its capital, expertise, and influence to create markets and opportunities where they are needed most.
In 2019, IFC delivered more than $19 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity.
