Parallex Bank Limited says it has received $10 million trade finance facility from the African Export-Import Bank (Afreximbank) to support Small and Medium-sized Enterprises (SMEs).
Dr Femi Bakre, the Managing Director/Chief Executive Officer of Parallex Bank, made this in a statement on Wednesday in Lagos.
Bakre said the financing, deployed under the Afreximbank’s Trade Facilitation Programme (AfTRAF), was part of the bank’s strategies to assist African banks to enhance and complement existing trade finance lines.
He added that the funds would be used to create lines of credit for businesses operating in the agriculture, export industry, health, education and renewable energy sectors.
Bakre said the funds would support other Pan-African business opportunities for Parallex Bank’s growing SME segment as well as for emerging commercial and corporate banking businesses.
He said the facility underscored the confidence that Afreximbank had 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.
“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.
“In addition to the $10 million trade finance facility, Afreximbank will provide Parallex Bank with technical assistance in capacity development and other training programmes geared towards solidifying the relationship between the two institutions,” Bakre said.
Bakre quoted Prof. Benedict Oramah, the President/Chairman of the Board of Directors of Afreximbank, as saying that the bank was 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,” Oramah said.
Parallex Bank is committed to promoting business growth in Africa and contributing to the development of the continent.
Parallex Bank Limited was incorporated as a limited liability company on the 22nd day of May 2020, having successfully converted from Parallex Microfinance Bank (a National Microfinance Bank incorporated in 2008 as a Unit MFB) to a commercial bank duly licensed by the Central Bank of Nigeria to carry out commercial banking services. This is a first-of-its-kind achievement in the Nigerian banking space.
