AfDB Board approves $400m for Ecobank, StanChart under private sector unit

The Board of the African Development Bank (AfDB) February 20, 2013 approved a total of $400 million for two major banks operating on the continent.

Ecobank and Standard Chartered Bank each received $200 million.

The Bank’s Board under its Revised Trade Finance Programme Business Plan gave approval for the funds for a trade finance package from the Private sector window. The credit will be over a four-year period. “It comprises a $100 million unfunded risk participation facility and a $100 million trade finance line of credit,” the Bank said.

The programme, the Bank says, will initially focus on Risk Participation Agreements with major commercial banks engaged in supporting documentary trade with African banks.

The funds approved for the Standard Chartered Bank received will also be for a trade finance risk participation agreemen. Under the agreement, the Bank would guarantee up to 50% of the credit risk on a portfolio of trade-related transactions originated by African financial institutions and confirmed or underwritten by Standard Chartered Bank, it said.

By Emmanuel K. Dogbevi