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AFC, Access Bank Sign Master Risk Participation Agreement for Trade Transactions

15 Jul 2010

PRESS RELEASE

AFC, Access Bank Sign

Master Risk Participation Agreement for Trade Transactions

Lagos, 9 July, 2010 – The Africa Finance Corporation (AFC) and Nigeria’s Access Bank have signed a master risk participation agreement for trade transactions. The agreement allows each institution to provide risk cover—with or without funding— for trade transactions originated by the other.

With this agreement, AFC and Access Bank will now be able to enhance each other's capacity for financing trade transactions. AFC will leverage on Access Bank's trade finance expertise and infrastructure, along with the bank’s extensive African coverage. Access Bank, on the other hand, will leverage on AFC's substantial risk bearing capacity and liquidity to enhance its trade finance capacity.

The agreement will be especially helpful in financing intra-African trade, including oil imports/exports between Nigeria and other African countries. The two institutions expect to finance trade transactions in excess of US$100 million under the agreement.

Solomon Asamoah, AFC Deputy Chief Executive Officer and Chief Investment Officer, said: "The agreement is unique and signifies a rare combination of expertise. This partnership will bring forth clear value to the banking public and the society at large as it allows both institutions access into each other’s areas of strength.” He explained that AFC will be able to leverage Access Bank’s trade finance expertise and extensive African coverage to deliver the organisation’s acclaimed structured trade and project financing products across the continent, whilst Access Bank will be able to provide additional banking services and products to these transactions and their clients. “It’s a powerful combination," stressed Asamoah.

Ebenezer Olufowose, Access Bank’s Executive Director for Investment Banking, said, "Access Bank has established itself as a leading trade finance house in Nigeria. The bank is desirous of extending this market leadership to other African markets where it is present. The signing of this agreement with AFC will enable us to achieve this objective while simultaneously enhancing our capability to handle larger and more complex transactions.” Olufowose added that the agreement will add value to the bank’s trade services offerings.

“The master risk participation agreement for trade transactions is a win-win for both AFC and Access Bank, and a welcome increase in the available trade finance banking capacity for African exporters and importers," said Taiwo Adeniji, AFC’s Director for Financial Institutions & Advisory Services.

Taiwo Adeniji

Director, Financial Institutions & Advisory Services

Africa Finance Corporation

3a Osborne Road

Tel. + 234 1 279 9600

Email: taiwo.adeniji@africafc.org

Richard Uku

Senior Vice President

& Head, Corporate Communication

Africa Finance Corporation

3a Osborne Road

Tel. + 234 1 279 9600