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Diamond Bank secures $70million trade facility

Posted by By SEUN ADESIDA on 2008/04/25 | Views: 623 |

Diamond Bank secures $70million trade facility


Diamond Bank Plc has brought succour to the business community in the country as it successfully signed a one year Syndicated Trade Finance Facility introduced by Sumitomo Mitsui Banking Corporation Europe Limited (SMBCE) for the growth of global trade transactions in Nigeria.

Diamond Bank Plc has brought succour to the business community in the country as it successfully signed a one year Syndicated Trade Finance Facility introduced by Sumitomo Mitsui Banking Corporation Europe Limited (SMBCE) for the growth of global trade transactions in Nigeria.

According to a statement by the bank, the deal, which closed at US$70 Million, was oversubscribed, recording an increase of $20million from its initial launch of US$50 million, a leap which is an indication of a monumental increase in the brand equity even beyond the shores of the country.

The statement further said that the loan will be used to support the funding of trade transactions by Diamond Bank's old and prospective customers, adding that a formal signing ceremony for the facility took place at the SMBC London office on Friday, April 4 2008.

Recently, Diamond Bank partnered with International Finance Corporation (IFC), an arm of World Bank, to secure a facility worth $20 million, with an aim to increase lending to smaller businesses, which face difficulties in accessing credit across much of Sub-Saharan Africa.

IFC will provide a $20 million loan to Diamond Bank under a programme that boosts lending to smaller businesses across sub-Saharan Africa by investing in and providing advisory services to local banks. The loans will be drawn from a finance facility of up to $200 million that has been approved by IFC's board for the entire programme.

The bank had, in the same vein, partnered with Shell Petroleum Development Company and GroFin of South Africa to float a $30 million fund branded 'Aspire Nigeria" to serve as a catalyst for the development and growth of Nigerian Small and Medium Enterprises (SMEs).

The fund is expected to enhance the operations of indigenous small and medium enterprises through the provision of much needed business development assistance and appropriate finance. The fund demonstrated the interests of the partners in contributing to the development of SMEs as a means of enhancing wealth creation in the economy.

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