Jaiz Bank Plc has secured a $25 million Sharia-compliant line of financing (LOF) from Islamic Development Bank (IsDB) to support small and medium scale enterprises, including those adversely affected by the COVID-19 outbreak in Nigeria.
According to a statement from the bank on Sunday, Ayman Sejiny, the Chief Executive of the Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of IsDB Group, and Hassan Usman, the Managing Director and Chief Executive of Jaiz Bank, signed the $25 million LOF agreement for both parties, respectively.
The contract details indicate that out of the total sum of US$25 million funds provided, US$10 million is allocated under the ICD’s US$ 250 million COVID-19 support package to help the private sector affected by the pandemic by leveraging on the expertise of the banking system of its member countries.
ICD’s line of financing facility will help to expand Jaiz Bank’s customer base by the provision of Shariah-compliant financing in response to a growing demand for Islamic finance to support, among others, COVID-19 affected projects and industries, the statement explained.
Ayman Sejiny said: “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 will meet their funding needs, as well as assist in keeping businesses open and preserving jobs, which is in line with ICD’s commitments to help the Nigerian economy to 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.”
Similarly, 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”.
Usman said the Jaiz bank appreciates ICD for 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.
The Islamic Corporation for the Development of the Private Sector (ICD) is a multilateral development financial institution and is a member of the Islamic Development Bank (IsDB) Group.
It was established in November 1999 to support the economic development of its member countries through the provision of finance for private sector projects, promoting competition and entrepreneurship, providing advisory services to the governments and private companies, and encouraging cross border investments.****