As part of its commitment to supporting the growth and development of financial institutions in the region, the Africa Export Import Bank (Afreximbank) announced the provision of $10m trade finance facility for Parallex Bank.

The funding is provided through Afreximbank's Trade Facilitation Programme (AfTRAF) which is part of its strategy to help African banks improve and supplement existing trade finance lines.

This facility will be deployed through on-lending, access to cross-border trade finance for small and medium-sized enterprises (SMEs), and to create lines of credit for businesses operating in the renewable energy solutions, health, education, agriculture, and export industry. 

It will also finance Pan-African business opportunities for the growing SME segment of Parallex Bank.

Speaking on the funding, Professor Benedict Oramah the President of Afreximbank said “We are pleased to be expanding the AfTRAF programme across Africa. This financing facility provided to Parallex Bank, comes in addition to other trade facilities already in used by other partner banks in Nigeria and throughout the continent to help bridge the financing gap created by the withdrawal of foreign correspondent banks.”

The MD/CEO of Parallex Bank Mr. Olufemi Bakre in his remarks stated that the facility underscored the confidence Afreximbank had in the financial institution and will help it to materialize our strategy of building ecosystem partnerships to support critical sectors of Nigeria’s economy for growth and development.

Parallex Bank will also receive support in capacity building, technical assistance, and other training programs.

Recently, Afreximbank signed a Memorandum of Understanding with the Chartered Institute of Bankers of Nigeria (CIBN) on capacity building in “Trade and Finance”.