Nigeria - United Bank for Africa LOC

This intervention relates to the provision of a USD 175 million multicomponent financing Package (Facility) to the United Bank for Africa Group (UBA). These components include: i) a USD 100 million thematic Line of Credit (LoC) for the purpose of on-lending to finance projects in key economic sectors such as agriculture (and related value chains), manufacturing, as well as power and infrastructure, and financial inclusion. In terms of financially excluded and underserved segments, the facility shall support small and medium sized enterprises (SMEs) (including women-owned enterprises) in Nigeria; (ii) a USD 50 million Trade Finance Line of Credit (TFLoC) to provide countercyclical dollar liquidity to help address the trade finance needs of SMEs and local corporates involved in export-import related activity not adequately addressed by traditional sources such as international commercial banks and (iii) USD 25 million unfunded Risk Participation Agreement (RPA) in which the Bank will strengthen UBA’s role as confirming bank and expand access to international markets for African issuing banks (IBs) by sharing the default risk on a portfolio of eligible trade transactions originated by eligible IBs and indemnified by UBA UK. The project contributes to climate finance, with 25% of the total approved amount dedicated to mitigation.