AfDB Signs $50 Million Risk Deal With Natixis to Boost Trade Financing
The African Development Bank (AfDB) has signed a $50 million risk participation agreement (APR) with French corporate and investment bank, Natixis.
The 50/50 risk-sharing agreement covers a portfolio of commercial transactions totaling $100 million, which will support commercial operations worth US$600 million in Africa over the next three years.
Senior Banker, Natixis, Marc Jaskowiak, who signed the agreement said, “This historic agreement allows us not only to better support our clients in Africa, but also to further strengthen the strategic relationship that we have the privilege of developing with the African Development Bank.”
The RPA will meet the growing demand of African markets for trade finance in key economic sectors such as agribusiness, health, services and industry.
In addition, it will promote the diversification of the economy, generating growth, jobs and additional tax revenues for several African states.
The agreement will notably benefit African commercial banks as well as SMEs on the continent, by guaranteeing them better access to financing for their foreign trade operations.
Also, AfDB Director of Financial Sector Development, Stefan Nalletamby said “The signing is important as it responds to our desire to develop financial partnerships with strong non-regional banks, to boost trade finance in Africa and further support intra-African trade, as outlined in our Trade Finance Program endorsed in 2018.”
“This agreement will allow us to extend our support to African SMEs, but also to local banks in French-speaking countries and some transition states.”