March 22, 2011 by Obinna Chima
The management of Access Bank Plc Monday disclosed that the bank has been granted a $30million trade finance facility by the Export-Import Bank of China (China EximBank).
A statement from the bank said the facility covers Letters of Credit and export credit guarantee, adding that the development is a strategic relationship with the major Development Finance Institutions.
“Access Bank is a leading African financial institution with impressive track record in trade and structured finance. Access Bank's strategic partnership with the China EximBank is expected to strengthen its trade services capacity and position the institution for excellent offerings to the growing Chinese community in Nigeria.
“The $30 million trade line will support the increasing volume of trade transaction between the two countries and facilitate the actualisation of various developmental projects on the African continent,” it said.
The statement described the China EximBank as an institution renowned for its cross-continental economic intermediation activities, particularly through trade services. Its excellent reputation, it added, has endeared it to several foreign Commercial Banks, Export and Credit Agencies, Multilateral and Development Finance institutions with a network covering major trade centres across the world.
It explained: “The Bank's strategic partners include Netherlands Development Finance Company (FMO), International Finance Corporation (IFC), Belgian Investment Company for Developing Countries (BIO), European Investment bank (EIB), Finnish Fund for Industrial Cooperation (FINNFUND), African Development Bank (AFDB), Export-Import Bank of the United States (EXIM Bank), African Export-Import Bank (AFREXIM), Commerz Bank amongst others. These partnerships are leveraged to provide its customers with value-added advisory services and access to competitively-priced funding.”
According to the statement, Access Bank is reputed for pulling landmark deals from global finance institutions and multilateral agencies.
“Notable among these deals was in 2010, when it signed a syndicated trade finance facility programme with FMO under which FMO and other Development Finance Institutions (DFI) to be arranged by FMO will provide guarantees for letters of credit issued by Access Bank,” it said.