Jaiz Bank secures $25m Shariah-complaint Fund from Islamic Corp
Jaiz Bank Plc has secured a $25 million Shariah-compliant Line of Financing (LoF) from Islamic Corporation for the development of the private sector (ICD) to support Small and Medium Enterprises (SMEs) in Nigeria.
The Chief Executive of the Islamic Corporation for the Development of the Private Sector, Ayman Sejiny, and the Managing Director and Chief Executive of Jaiz Bank, Hassan Usman, signed the $25 million LoF agreement to support SMEs in Nigeria, including those adversely affected by the COVID-19 outbreak.
The contract details indicated that out of the $25 million funds provided, $10 million is allocated under the ICD’s $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 with 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, a statement from Jaiz Bank said.
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.”
He added that the facility would also “assist in keeping businesses open and preserving jobs, which is in line with ICD’s commitments to help the Nigerian economy overcome the adverse impact of the COVID-19 pandemic and strengthen financial inclusion”.
Usman said Jaiz bank was “delighted with this partnership, which started in 2018 with a $20 million LoF to support SMEs in Nigeria, the line was fully utilised by eligible SMEs with a substantial portion going to the Agricultural sector”.
He said: “The facility was fully repaid earlier this year and has helped in generating over 791 direct jobs and put Jaiz Bank among the major banks repatriating non-oil export proceeds to the country.
“The additional $25 million LoF facility will further enhance the bank’s capacity to continue to provide support to the local private sector enterprises with substantial socio-economic impact.”