The African Development Bank (AfDB) has approved a $ 50 million unfunded risk-sharing agreement for Commerzbank AG (Commerzbank) to support African banks in their trade finance operations.
Commerzbank AG is a German banking and financial services company based in Frankfurt, Germany with a presence in more than 50 countries worldwide.
The risk participation, which was approved by the ADB Board of Directors on Tuesday, March 27, 2018, is expected to benefit from Commerzbank’s support to African issuing banks seeking to expand their trade finance operations.
For Stefan Nalletamby, the Bank’s director of financial sector development: “Commerzbank is a strategic partner in the implementation of the Bank’s development mandate. This intervention will improve market access for African issuing banks, businesses and SMEs. ”
The facility is expected to help meet the demand of the trade finance market in key economic sectors such as agriculture and manufacturing. It will also promote the development of the financial sector, regional integration and stimulate public revenue generation.
It will be the African Development Bank’s second venture capital agreement with Commerzbank, a major player in the global trade finance market with a significant footprint in Africa.
The first took place in 2003, when the Development Bank signed a $ 100 million unfunded risk-sharing agreement with Commerzbank AG on the basis of a 50/50 risk-sharing agreement. three years.
