• Thursday, June 20, 2024
businessday logo

BusinessDay

FCMB acquires $15m facility to boost trade finance

FCMB acquires $15m facility to boost trade finance

First City Monument Bank (FCMB) Plc, a financial service holding company, has announced its acquisition of a $15 million trade financing facility from the International Islamic Trade Finance Corporation (ITFC) to strengthen its support of Nigeria’s trade finance sector.

The facility was a Master Murabaha Agreement with ITFC, a member of the Islamic Development Bank Group, a statement said on Wednesday.

According to Fitch, the size of the Nigerian Islamic finance industry is estimated at $2.9 billion at the end of 2022, with outstanding sukuk being the largest segment at 57 percent, followed by Islamic banks at 42 percent (total assets), and the remaining 1 percent between Islamic funds (total assets) and takaful (total contributions).

Yemisi Edun, managing director/CEO at FCMB, said the agreement affirms FCMB’s commitment to driving sustainable economic growth in Nigeria.

Read also: The rise of decentralised finance: How blockchain-based payment systems challenge traditional banking

“By investing in critical sectors like agribusiness and renewable energy, we’re not just strengthening our position, we’re contributing to a more robust and resilient Nigerian economy that can confidently engage globally,” she added.

Gerald Ikem, head of treasury and international banking at FCMB emphasised that the collaboration with ITFC signifies more than just international recognition of FCMB and Nigeria’s economic potential. It equips the company with the resources needed to drive growth in vital sectors such as agriculture, manufacturing, and renewable energy.

“It reinforces our dedication to fostering sustainable and inclusive economic progress throughout the country,” she added.

A lender said the funds will facilitate the import and export of agricultural products, machinery, essential commodities, raw materials, and alternative energy solutions.