Yemisi Izuora
Sterling Bank has secured a $40million facility from the Turkey EXIM Bank after the conclusion of a due diligence on the Bank which confirmed it as a reputable financial institution with capacity to meet its obligations.
Sterling was also seen as a worthy partner through which funds could be brought into the country for trade finance leading to the development of the country.
This further lays credence to the rating of the Bank by Moody’s, a leading global rating agency which assigned a first-time local and foreign currency issuer and deposit ratings of B2 with a stable outlook to Sterling Bank Plc.
The rating according to the Agency, reflects the Bank’s solid asset quality metrics and provision coverage, improvements to its Information Technology (IT) infrastructure and risk management processes as well as its high liquidity buffers and a solid deposit funding base.
In a statement, the Bank indicated that the facility would be used to support trade businesses and projects with Turkish origin.
With this development, members of the Turkish business community in Nigeria as well as Nigerian businessmen and women doing business with Turkish partners will have easy access to finance for their businesses especially in the importation of necessary raw materials and other infrastructure for production which would also serve as a catalyst for economic development in the country.
Turkey EXIM Bank may have been convinced by Sterling banks role in international finance, its reputation as a stable and reliable financial institution and its capacity to support both local and international institutions before agreeing on the facility.
The Turkey EXIM Bank is a fully state-owned bank acting as the Turkish government’s major export incentive instrument.
Like Nigeria’s NEXIM Bank, Turkey EXIM Bank’s main objectives are promoting Turkish exports through diversification of exported goods and services by increasing the share of Turkish exporters in international trade, finding new markets for traditional and non-traditional export goods and providing exporters as well as overseas contractors with support to increase their competitiveness and to ensure a risk-free environment in international markets.