Ecobank Nigeria says it has signed a $20m credit deal with Brazilian Development Bank.
The facility will address special funding needs of customers and non-customers of Ecobank that import goods from Brazil, according to a statement by the lender.
The Brazilian bank, also known as National Bank for Economic and Social Development, is one of the largest development banks in the world, with financial net worth of $27.40bn and total assets of $353.37bn in 2013.
The statement quoted the Executive Director, Corporate Banking, Ecobank Nigeria, Ms Foluke Aboderin, as saying that the partnership was driven by demands from customers and importers requiring competitive financing to purchase products from the international markets, particularly Brazil.
According to Aboderin, the partnership underscores Ecobank’s pedigree in trade financing in Nigeria.
“This partnership offers a seamless solution to companies that import goods from Brazil,” she said. “We encourage all goods importers to avail themselves of the opportunity that this funding arrangement provides by approaching Ecobank. We expect it to generate a sizeable boost in trade flows between both countries.”
Under the arrangement, importers and exporters negotiate export terms and conditions, and once commercial negotiation is finalised, the exporter or agent bank in Brazil submits the transaction to BNDES for approval.