In a strategic move to bolster support for the private sector, infrastructure development and women-owned businesses, the United Bank for Africa (UBA) has successfully secured a $175 million facility from the Africa Development Bank Group (AfDB).
This financial package comprises $100 million in long-term senior debt, $50 million in trade finance medium-term senior debt, and a $25 million risk participation program.
The long-term senior debt component aims to amplify UBA’s capacity to finance crucial projects in Nigeria, focusing on key sectors such as infrastructure, agriculture, manufacturing, energy, and small and medium-sized enterprises (SMEs).
To complement this, the AfDB’s Affirmative Action for Women in Africa initiative will provide technical assistance, fostering enhanced access to finance and support for women-owned SMEs.
The trade finance senior debt, amounting to $50 million, will serve as countercyclical dollar liquidity for UBA, primarily directed towards supporting SMEs and local corporates engaged in export-import activities over the short to medium term.
Also, the unfunded Risk Participation Agreement is designed to fortify UBA UK’s role as a regional confirming bank, facilitating expanded access to international markets for African issuing banks that have historically faced exclusion.
Lamin Barrow, the AfDB’s Group Director-General for Nigeria, expressed satisfaction with the alignment of this financial support with the AfDB’s overarching priorities, emphasizing its contribution to initiatives such as Power Africa, Feed Africa, Integrate Africa, and Industrialize Africa.
Oliver Alawuba, Group Managing Director, UBA said, “This facility will further deepen our support, which has been very considerable, to the critical sectors of the Nigerian economy and especially to women-owned businesses and small and medium enterprises, which we consider as the engine of any country’s economic development.”
The collaboration between AfDB and UBA through this $175 million facility signifies a significant step toward fostering economic growth, empowerment, and sustainability across key sectors in Nigeria.
