A senior loan of $ 30 million will be provided to Union Bank of Nigeria by IFC. This facility will be used to strengthen the cash flow of the Bank's client companies, mainly those operating in the health, food and retail sectors.
The International Finance Corporation (IFC) plans to provide a senior loan of up to $ 30 million to the Union Bank of Nigeria.
The resource will be granted under the FIG Covid-19 Emergency Response Working Capital Solutions Envelope (WCS Envelope), a mechanism designed for IFC client banks in emerging markets that helps strengthen corporate cash flow, including activities have been affected by the covid-19 health crisis.
The facility will help the Union Bank of Nigeria increase its lending to small and medium-sized enterprises, especially those in the health, food and commerce sectors, to enable them to strengthen their operations, and access essential raw materials, says the project document published by the member institution of the World Bank Group.
The Nigerian banking establishment, which has Union Global Partners Limited as its largest shareholder, with 65.10% of shares, granted loans in the order of 550.6 million naira to its customers in 2019. These loans are up from the 428 million naira of loans granted at the end of 2018.
Source Ecofin Agency