- Signs pact with Islamic Corporation
BY COBHAM NSA – Jaiz Bank Plc has received a $25 million shariah-compliant line of financing (LOF) from Islamic Corporation for the Development (IsDB) of the private sector to support Small and Medium Scale Enterprises (SMEs) in Nigeria.
The Bank said in a statement that Ayman Sejiny, Chief Executive of Islamic Corporation for the Development of the Private Sector (ICD), private sector arm of IsDB Group, and Hassan Usman, Managing Director and Chief Executive of Jaiz Bank, endorsed the $25 million LOF agreement to support the SMEs in Nigeria.
The statement explained that the SMEs’ funding coverage is especially for those businesses adversely affected by the COVID-19 outbreak.
According to the contract details, of the US$25 million provided in the pact, US$10 million is allocated under the ICD’s US$ 250 million COVID-19 support package to aid private sector operators hard-hit by the pandemic.
Looking to leverage on the expertise of member countries’ banking system, the ICD’s line of financing facility will assist to expand Jaiz Bank’s customer base by the provision of Shariah-compliant funding in response to a growing demand for Islamic finance to support, among others, COVID-19 affected projects and industries.
ICD’s Chief Executive, Ayman Sejiny said of the agreement; “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 meets their funding needs as well as assist in keeping businesses open and preserving jobs, in line with ICD’s commitment to helping the Nigerian economy overcome the adverse impact of the COVID-19 pandemic and strengthen financial inclusion.
“We have no doubt that this line of financing facility will provide much-needed support to private sector businesses, including those which have been affected by the pandemic.”
In his remarks, the Jaiz Bank Chief Executive, Hassan Usman said; “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 US$25 million 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”.
For him, Jaiz bank appreciates ICD’s gesture in 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.
A multilateral development financial institution, the Islamic Corporation for the Development of the Private Sector (ICD) is a member of the Islamic Development Bank (IsDB) Group.
ICD was set up in November 1999 to support the economic development of member countries through the provision of finance for private sector projects; as we as promoting competition and entrepreneurship.
Others include providing advisory services to the governments and private companies; and encouraging cross-border investments among member-nations.
