AfDB, UBA Sign Landmark USD 150 million Loan

African Development Bank (AfDB) and the United Bank for Africa Plc (UBA) has signed a two- loan agreement for a total of USD 150 million. 
Aloysius Uche Ordu, vice president, Regional and Country Programs and Policy from the African Development Bank (AfDB) and Faith Tuedor-Matthews, deputy managing director, from the United Bank for Africa Plc (UBA) signed the agreement on behalf of their respective institutions.
The loan agreements were signed under the AfDB Emergency Liquidity Facility (ELF), and Trade Finance Initiative (TFI) designed for the rapid injection of liquidity into African markets via strong private sector partner institutions.
These are the largest facilities to date, granted by the AfDB to a private sector financial institution in Africa. ‬‪‬‪The TFI loan totaling USD 100 million will be used by UBA to advance trade credits to corporate customers across its pan-African network, enabling it fill the gap left by the retreat of non-African institutions from the market.
This loan will permit UBA to significantly ramp up its intra-African corporate banking operations and specifically the promotion of regional trade. The ELF of USD 50 million also approved by the AfDB will enable UBA to play a catalytic role in supporting corporate projects, infrastructure and SME financing across Africa.
Speaking at the ceremony, Aloysius Uche Ordu, AfDB vice president, stated that “Regional commercial banks such as the United Bank for Africa have an important role to play in accelerating Africa’s economic growth, social development and economic integration of our nations.”
“The AfDB is committed to supporting these institutions with comprehensive assistance.  We hope that this support will go a long way in strengthening and enhancing UBA’s ability to impact its pan African operations”.
These transactions are consistent with the AfDB’s initiatives formulated in response to the Global Financial Crisis, its Country Strategy Paper for Nigeria as well as the Nigerian Government’s millennium development agenda. This financial assistance to UBA also fits with the AfDB's Private Sector strategy to support sound and capable financial institutions during the financial crisis.
Also speaking at the signing ceremony, Faith Tuedor-Matthews the deputy managing director, UBA, said “the support from the African development bank will further enhance UBA’s ability to service its customers across the African continent.
Coming at a time of severe credit constraints globally, this deal which represents the single largest commitment to a financial institution in the continent is a major recognition of UBA’s ability to support private and public enterprises across Africa.”