Ecobank Nigeria and Deutsche Bank have signed Memorandum of Understanding (MoU) to expand trade finance relationship. Under the arrangement, Deutsche Bank will provide export credit guarantee programme GSM-102 to Ecobank Nigeria.
The bank offering of a GSM-102 programme will guarantee credit to encourage financing of commercial exports of U.S agricultural products, while providing competitive credit terms to buyers.
Ecobank Nigeria will use irrevocable dollar denominated letters of credit for the import of eligible agricultural products from the U.S while Deutsche Bank will advise, confirm and negotiate these letters of credit as well as provide post-shipment financing in accordance with the GSM-102 programme regulations.
Speaking on the deal, Managing Director, Ecobank Nigeria, Jibril Aku said: “We look forward to expanding our relationship with Deutsche Bank with this GSM-102 programme.
Deutsche Bank export credit guarantee service will offer a simple and efficient way for our importers to access agricultural products in the U.S and strengthen economic and trade development in the region.