Sterling Bank signs $65 million loan deals with BADEA

19 Feb 2019
Financial Nigeria


The facilities will be used to finance private sector projects and Arab exports to Sub-Saharan Africa.

Abubakar Suleiman, Chief Executive Officer, Sterling Bank Plc

The Arab Bank for Economic Development in Africa (BADEA), a Khartoum-based multilateral development financial institution, and Sterling Bank Plc, a tier two Nigerian bank, have signed two loan agreements amounting to $65 million, or an equivalent of N23.4 billion.

The first loan agreement is for $15 million, and is to enable Sterling Bank finance private sector projects. The second facility is a $50 million line of credit for financing Arab exports to African countries as part of BADEA’s programme for financing the growth of Arab exports to Sub-Saharan Africa.

“The first $15 million would help us finance private sector projects in Nigeria through on-lending to customers,” said Adeyemi Odubiyi, Sterling Bank’s Executive Director – Corporate and Investment Banking, who signed the agreement on behalf of the bank in Cairo, Egypt, on Monday. “The second $50 million loan agreement is aimed at bringing Arab goods and products to Nigeria, through on-lending to beneficiaries in the country.”

Established in 1973 at the Arab Summit Conference in Algiers, BADEA’s objective is to strengthen economic, financial and technical cooperation between the Arab and African regions, and for the embodiment of Arab-African solidarity on foundations of equality and friendship. BADEA is mandated to participate in financing economic development in African countries, stimulate the contribution of Arab capital to African development and provide the technical assistance required for the development of Africa.

“This loan agreement marks the beginning of our cooperation with Sterling Bank,” said Dr Sidi Ould TAH, Director-General of BADEA. “This cooperation would enhance the role of the private sector in Nigeria’s economic and social development by contributing to the mobilisation of the production and service sectors.”

He also said the loan agreements will aid in the creation of job opportunities to support Nigeria’s budget through tax revenue, which will accelerate economic growth and improve people’s standard of living.

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