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First Bank Gets $63 million Brazilian Credit

Nigeria Today
22nd April '08

Nigeria's biggest financial institution by assets, First Bank, said on Monday it had secured a $63 million credit from Brazil's state-run BNDES development bank to finance imports from there. Several Nigerian banks have succeeded in obtaining credit facilities from foreign financiers since the conclusion of a banking sector reform in 2005 in the world's eighth-biggest oil exporter that forced 89 mostly fragile institutions to merge into 25 stronger groups.

First Bank, Nigeria's oldest commercial bank, said the BNDES deal was in line with its strategy to encourage and promote bilateral trade between Africa's top oil producer and other emerging and developed economies."It is expected this type of financial collaboration will promote business relations between Nigeria and Brazil," the statement said.

The National Bank for Social and Economic Development or BNDES, Brazil's largest long-term lender, is the main source of export financing for Brazilian firms. Since its creation in 1990, it has disbursed $16 billion for the production of goods for export through its pre-shipment facility. First Bank signed a preliminary deal with China Construction Bank this year to strengthen its business in credit lines, trade finance, syndication and project finance, sharing of business experience and foreign exchange transactions.

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