uniBank Ghana Limited has secured a €10million credit facility from the European Investment Bank (EIB) to enable it deepen its footprints in the country’s financial sector.
The agreement which was finalized in Accra on Tuesday, would enable uniBank to make available credit to small and medium-sized enterprises who represents a mainstream of the country’s economy, on both short and long-term basis.
The new credit line from EIB will further allow uniBank to provide loans in both Euros and dollars, with a tenure of up to eight years. And according to the bank, “this represents a much longer maturity than typically available in the country.”
The European Investment Bank agreed the new credit line with uniBank following thorough due diligence process on banks with solid corporate profile and good financial grounding.
The new lending agreement with uniBankGhana is the third scheme from the EIB after earlier deals with Ecobank and Societe Generale to support investment in the country under an €80 million credit, launched in 2013 to improve access to finance by companies in Ghana.
Lending under the scheme will support investment in various sectors of the economy including agriculture, manufacturing, construction, transport, education and healthcare as well as reinforcing long-term investment by Ghanaian companies. This is envisaged as crucial for supporting economic growth, benefiting from new business opportunities and creating jobs.
“Today’s support of €10million to uniBank, together with the facilities already provided to Societe Generale and Ecobank to improve access to finance for SMEs are crucial, since SMEs are the backbone of Ghana’s economy and by far the biggest job provider in the country,” said EU delegation Ambassador, William Hanna.
The new credit agreement with uniBank seeks to make credit available to businesses, especially small scale enterprises on a long-term basis as well as on the short term.
The Chief Executive Officer uniBank Ghana, Felix Nyarko-Pong, said, despite the financial challenges the country is going through, the loan facility represents a much needed partnership for both country and uniBank as it will enable the bank to advance credit to businesses to allow them put in place the required planning and resources for growth, job creation and development.
“We welcome and thank the EIB for the facility and also assure our customers that we are in a much stronger position to meet their banking and financial needs,” Felix Nyarko-Pong said.
Alongside support for company investment, the EIB engagement will help improve the banking sector in Ghana through backing expansion of branch network, its systems and staff training within uniBank.
Over the past years, the EIB has provided nearly 6oo million euros to support public sector projects and private sector investment in Ghana since its first operation in 1976. This has included direct loans, credit line with local banks and investment in smaller projects by private equity or microfinance funds. The EIB has also supported investment in several sectors including energy, industry, transportation and financial sector.
The Senior Loan Officer, EIB, Isaia Romol, assured of his outfit unwavering support to assist in the country’s development.