Afreximbank supports Parallex Bank with trade-financing facility

Afreximbank has provided Nigeria’s Parallex Bank Limited a trade finance facility worth $10m, in line with its strategy to assist African banks to enhance and complement existing trade finance lines.

The financing was deployed under the umbrella of Afreximbank’s Trade Facilitation programme.

Speaking on the trade facility, the President and Chairman of the Board of Directors of Afreximbank, Benedict Oramah, said this move was geared towards bridging the financing gap for businesses.

He said, “We are pleased to continue to expand the AfTRAF programme across Africa. This financing facility provided to Parallex Bank comes in addition to other trade facilities already in use by our other partner banks in Nigeria and throughout the continent to help bridge the financing gap created by the withdrawal of international correspondent banks.”

Also, the Managing Director/ Chief Executive Officer of Parallex Bank, Olufemi Bakre, added that , “This facility underscores the confidence that Afreximbank has in Parallex Bank.

“It helps us to materialise our strategy of building ecosystem partnerships to support critical sectors of Nigeria’s economy for growth and development.”

Reassuring the public, Bakre stated, “We will engage in product-based collaborations to increase transaction mileage in specific and strategic segments, such as the creative industry, women-owned and managed businesses, among others.

“Parallex Bank remains committed to promoting business growth in Africa and contributing to the development of the continent.”

Parallax bank in a statement said the $10m financing facility would be used by to facilitate, through on-lending, access to cross-border trade finance for small and medium-sized enterprises, and to create lines of credit for businesses operating in the agriculture, export industry, health, education and renewable energy sectors.

According to it, the funds would also support other pan-African business opportunities for Parallex Bank’s growing SME segment, as well as for emerging commercial and corporate banking businesses.

In addition to the $10m trade finance facility, Afreximbank would provide Parallex Bank with technical assistance in capacity development and other training programmes geared towards solidifying the relationship between the two institutions.