$200 Million Expended: By the United Bank for Africa in a way to Subsidize the Crude Oil Sale to Strengthen Investment Growth and Liquidity Statutes
By Abdul Rahman Bangura–
NEW AFRICA DAILY NEWS (NADN) Freetown, Sierra Leone- The United Bank for Africa – a Pan African financial services group with its headquarters in Lagos – Nigeria, has dissemble as a preliminary mandated forefront arranger with a consortium of Nigerian retail banks in $1.5 billion naira pre-export finance facility for Eagle Export Funding Limited to foster the sale of crude by the Nigerian National Petroleum Corporation and National Petroleum Development Company (NPDC) The United Bank for Africa is giving $200 million in naira equivalent to the crude oil sale to finance investment growth and liquidity regulations.
“The forward sale will provide much-needed capital for investment in NNPC production capacity which is of strategic importance to the Nigerian economy and the country’s leading source of foreign exchange.
UBA’s position as the Mandated Lead Arranger recognizes the group’s strength in structuring and deploying financing to the oil and gas sector and the depth and liquidity of the group’s balance sheet,” the bank stated.
Additional players in the Eagle Export Funding Limited deal include Standard Chartered Bank, Afrexim Bank, Union Bank , and two oil trading companies – Vitol and Matrix.
The group Chairman of the United Bank for Africa -Tony Elumelu, speaking on the facility noted, this has been one of the considerably economically demanding years that Nigeria has noticed, with the striking fall in the price of oil and the arising suffering that pursued the beginning of the Novel Coronavirus (COVID-19) pandemic, and so the private sector must come together and render meaningfully to the economy.
“This facility is clear evidence of this – UBA is providing an investment that will significantly improve Nigeria’s production capacity and in doing so also demonstrating the strength, depth, and sophistication of our commercial banking capability. I believe that together, working with governments, we can create more jobs and more wealth for people, not only in Nigeria but across Africa.”
With operations in twenty African countries and more than 20,000 employees, and operations in the UK and US, France, providing retail, commercial and institutional banking services, the United Bank for Africa is, one of the vastest employers in the financial sector on the African continent.
For New Africa Daily News Abdul Rahman Bangura Reports, Africa Correspondent