United Bank for Africa (UBA) is one of the largest banks in Nigeria. It ranks 4th for the size of its balance sheet and has a network of 700 branches with over 7 million clients.
To support the growth of UBA’s SME loan portfolio, Proparco has just signed an NGN 1.9bn portfolio guarantee (EUR 4.7m) to share the credit risk. This ARIZ guarantee will automatically cover 50% of future SME loans. Part of the loans covered (at least 30%) will specifically concern SMEs in the education sector or SMEs owned by women.
AFD Group’s ARIZ risk-sharing program was launched in 2008 and aims to reduce the financing gaps faced by small and medium-sized enterprises, in particular due to the lack of collateral guarantees or difficulties in preparing financial statements.
This information is given at the time of signature, without prejudice to any developments in the operation/project
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SignatureNigeria: PROPARCO has allocated a guarantee to UBA to support SMEs
Published on 20 January 2021 -
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