ICD and Jaiz Bank-Nigeria sign Line of financing agreement to support SMEs
ICD’s LOF facility will help to expand Jaiz Bank’s customer base by the provision of Shariah-compliant financing in response to the growing demand for Islamic finance to support, among others, COVID-19 affected projects and industries.
Mr Ayman Sejiny, the CEO of the Islamic Corporation for the Development of the Private Sector (ICD) (www.ICD-ps.org), the private sector arm of IsDB Group, and Mr Hassan Usman, the Managing Director & CEO of Jaiz Bank-Nigeria, signed a USD 25 Million Shariah-compliant Line of financing (LoF) agreement to support the SMEs in Nigeria, including those adversely affected by the COVID-19 outbreak.
Out of this USD 25 Million LOF, USD 10 Million is being allocated under the ICD's USD 250 Million COVID-19 Support Package to help the private sector affected by the pandemic by leveraging on the expertise of the banking system of its member countries.
ICD's LOF facility will help to expand Jaiz Bank's customer base by the provision of Shariah-compliant financing in response to the growing demand for Islamic finance to support, among others, COVID-19 affected projects and industries.
On this occasion, Mr Ayman Sejiny commented: "Continuous cooperation between ICD and Jaiz Bank, the pioneer in Islamic banking in Nigeria, will result in easier access by SMEs to Shariah-compliant financing that will meet their funding needs, as well as assist in keeping businesses open and preserving jobs, which is in line with ICD's commitments to help the Nigerian economy to overcome the adverse impact of the COVID-19 pandemic and strengthen financial inclusion. We have no doubt that this LoF facility will provide much-needed support to private sector businesses including those which have been affected by the pandemic."
Mr Hassan Usman stated that: "We are delighted with this partnership with ICD which has started in 2018 with a USD 20M Line of Finance to support SME's in Nigeria, the Line was fully utilized by eligible SME's with a substantial portion going to the Agricultural sector. The facility was fully repaid earlier this year and has helped in generating over 791 direct jobs and put the Bank among the major Banks in repatriating non-oil export proceeds for the country. The additional USD 25M Line of financing facility will further enhance the Bank's capacity to continue to provide support to the local private sector enterprises with substantial socio-economic impact. Mr Hassan Usman added: "We appreciate ICD for extending this facility in such a challenging time due to the COVID-19 Pandemic when economies need banks to further support their customers, especially SMEs in order to foster economic growth and direct job creation."
(With Inputs from APO)