FCMB Secures $15m Trade Finance Facility from ITFC
First City Monument Bank (FCMB) has announced the acquisition of a $15 million trade financing facility from the International Islamic Trade Finance Corporation (ITFC). In a statement released on Wednesday, the bank described the facility as a Master Murabaha Agreement with ITFC, a member of the Islamic Development Bank Group.
This development is significant against the backdrop of Nigeria’s growing Islamic finance industry, which Fitch estimated at $2.9 billion by the end of 2022. Within this industry, outstanding sukuk represent the largest segment at 57%, followed by Islamic banks at 42%, with the remaining 1% split between Islamic funds and takaful.
The agreement is set to enhance FCMB’s support of Nigeria’s trade finance sector. “This agreement affirms FCMB’s commitment to driving sustainable economic growth in Nigeria. By investing in critical sectors like agribusiness and renewable energy, we’re not just strengthening our position, we’re contributing to a more robust and resilient Nigerian economy that can confidently engage globally,” stated Yemisi Edun, Managing Director of FCMB.
Gerald Ikem, FCMB’s Divisional Head of Treasury and International Banking, highlighted the significance of the partnership: “This collaboration with ITFC signifies more than just international recognition of FCMB and Nigeria’s economic potential. It equips us with the resources needed to drive growth in vital sectors such as agriculture, manufacturing, and renewable energy. It reinforces our dedication to fostering sustainable and inclusive economic progress throughout the country.”
According to FCMB, the funds from this facility will facilitate the import and export of agricultural products, machinery, essential commodities, raw materials, and alternative energy solutions, thereby playing a crucial role in boosting Nigeria’s economic landscape.
