The African Development Bank (AfDB) has granted United Bank for Africa (UBA) and Zenith Bank a total of $200 million (about N30.2 billion) under its Trade Finance Initiative.
UBA has the largest chunk of $150 million. The development, according to a statement from the bank, was in further recognition of the ability of the banks to support the private sector and public enterprises in Africa.
The facility, approved by the AfDB Board of Directors last week, represented the largest commitment to a single bank in Africa by the regional development finance organisation.
In addition to the provision of short-term credit for import and export finance, the funds from the facility would be utilised to support trade activities, using UBA's network across the continent.
To fast-track economic development and boost liquidity, the AfDB is offering two Emergency Funding Initiatives to banks: the Emergency Liquidity Fund (ELF) and the Trade Finance Initiative (TFI), which together are expected to inject a total of approximately $2.5 billion in fresh liquidity into African banks in 2009 and beyond. The AfDB also lent Gabon $71 million to finance an education and vocational training scheme.
United Bank for Africa Plc is one of Africa�s leading financial institutions, offering banking services to more than seven million customers across 750 branches in 19 African countries. With presence in New York, London and Paris, UBA is connecting people and businesses across Africa through retail and corporate banking, innovative cross-border payments, trade finance and investment banking.
Zenith Bank on its part remains a global brand with strong presence in Accra, Ghana and London, as well as a representative office in Johannesburg.
The bank's core values include service excellence, investment in human capital development, superior asset quality and strong credit culture, good and sustainable earnings, strong capital base, professionalism and community development. The bank maintains sound corporate governance culture, in line with global best practices.
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