African Export-Import Bank (Afreximbank) has disbursed US$200 million to Zenith Bank Plc Nigeria, to help the bank cushion the impact of the Covid-19 pandemic and maintain foreign currency trade flows.
The fund will also allow Zenith Bank to on-lend to eligible sub-borrowers involved in the manufacture and supply of medical resources needed to combat the COVID-19 pandemic.
According to the press release by Afreximbank, the fund was released under its Pandemic Trade Impact Mitigation Facility (PATIMFA).
PATIMFA was set up in March 2020 to provide financing to assist Afreximbank member countries to adjust in an orderly manner to the financial, economic, and health services shocks caused by the COVID-19 pandemic.
This 3-year medium-term facility has been availed through direct funding. Afreximbank has already disbursed more than US$3.5 billion under PATIMFA.
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In June, the IFC (International Finance Corporation) approved $100 million loan to Zenith Bank Plc Nigeria to help increase the Bank’s support to clients and companies whose cash flows have been disrupted by challenges caused by the COVID-19 pandemic.
Speaking on the facility, the Group Managing Director/Chief Executive of Zenith Bank, Mr. Ebenezer Onyeagwu said, “the Afreximbank facility undoubtedly underscores the confidence reposed in Zenith Bank, and it will enable the bank to contribute to the fight against the COVID-19 pandemic by providing trade finance and foreign currency funding for the importation of urgent medical equipment and raw materials.”
Prof. Benedict Oramah, President of Afreximbank, said; “the Pandemic Trade Impact Mitigation Facility (PATIMFA) is designed to support and stabilize the foreign exchange resources of African countries, enabling them to support critical imports under emergency conditions. We are pleased to contribute to keeping economies going especially during this pandemic.
“The role that banks such as Zenith Bank play in Africa is huge. Supporting them to carry out their mandate is our greatest contribution to making sure that African countries and institutions build back better from the shocks of the pandemic.”
About Zenith Bank
Zenith Bank Plc (NSE ticker – ZENITHBANK) is Nigeria’s largest bank by Tier-1 capital. The bank serves more than 9 million corporate and individual clients through its network of over 500 branches across Nigeria and its subsidiaries in the Gambia, Ghana, Sierra Leone, and the United Kingdom. It also has a representative office in Beijing China, and Dubai (UAE) a branch of Zenith Bank UK.
About Afreximbank
The African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution with the mandate of financing and promoting intra-and extra-African trade. Afreximbank was established in October 1993 and is owned by African governments, the African Development Bank, and other African multilateral financial institutions as well as African and non-African public and private investors.
At the end of 2019, the Bank’s total assets and guarantees stood at USD$15.5 billion and its shareholders’ funds amounted to US$2.8 billion. Voted “African Bank of the Year” in 2019, the Bank disbursed more than US$31billion between 2016 and 2019. Afreximbank has ratings assigned by GCR (international scale) (A-), Moody’s (Baa1), and Fitch (BBB-). The Bank is headquartered in Cairo, Egypt.
Written by;
Ifunanya Ikueze
