Ecobank Nigeria has made history of becoming the first Nigerian Bank to have utilized a credit line under the U.S. Department of Agriculture (USDA) Export Credit Guarantee Program.
The GSM 102 Program provides credit guarantee to encourage commercial financing of U.S. agricultural commodity exports, thereby assisting U.S. exporters in making sales that might not otherwise occur.
The Credit Line Under the US Government Export Guarantee Program is reserved exclusively for the export of agricultural products from the USA. It has facilitated increased trade of Agricultural products between US exporters and Nigerian importers and has also provided an avenue for competitively priced financing for longer tenors to both exporters and importers.
The Credit Line has equally provided the exporter guaranteed payment; It enables exporters to agree credit terms with importers and there is no minimum transaction size.
According to Executive Director Corporate Bank, Ms. Foluke Aboderin, the GSM 102 Facility which has the ability to be up-sized, has been used for Structured Trade Finance transactions with Cargill Financial Services International, one of the subsidiaries of the Leading International Commodities Trading House, CARGILL Inc. Deutsche Bank played the role of Confirming and Partner Bank.
The recognition of Ecobank, a member of the Ecobank Group – the Pan-African Bank, by the US government, further highlights the unique advantages of partnering with a counterparty who has widespread foot print across the African continent.
With presence in 36 countries in Africa, Ecobank is well positioned to provide easy access to international counterparties that have transactions across Africa, the emerging frontier market with significant untapped opportunities and strong demographics.