The United Bank for Africa (UBA) has successfully obtained a $175 million facility from the Africa Development Bank Group (AfDB), aimed at intensifying its backing for the private sector, infrastructure development, and women-owned businesses.
In a statement released on Monday, the facility includes $100 million in long-term senior debt, $50 million of trade finance medium-term senior debt, and a $25 million risk participation program.
According to the statement, the long-term senior debt component will bolster UBA’s capacity to finance pivotal projects in Nigeria, focusing on infrastructure, agriculture, manufacturing, energy, and small and medium enterprises (SMEs). The initiative will be complemented by technical assistance from the Affirmative Action for Women in Africa initiative, aiming to enhance access to finance and technical support for women-led SMEs.
The trade finance senior debt aspect is designed to provide UBA with essential countercyclical dollar liquidity, supporting SMEs and local corporates involved in export-import activities in the short to medium term. The unfunded Risk Participation Agreement seeks to strengthen UBA UK’s role as a regional confirming bank, expanding access to international markets for African issuing banks.
Lamin Barrow, the AfDB’s Group Director-General for Nigeria, expressed pleasure in supporting UBA with this package, aligning with the AfDB’s high-priority areas: light up and power Africa, feed Africa, integrate Africa, and industrialize Africa.
Group Managing Director of UBA, Oliver Alawuba, commented on the development, stating, “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 the engine of any country’s economic development.” The move reflects UBA’s commitment to fostering economic growth and empowering underrepresented segments of the business community.
