Union Bank of Nigeria and AATIF announce USD 25m funding line to expand the Bank's agri business footprint.
Union Bank of Nigeria Expands Agricultural Footprint in Nigeria: The Africa Agriculture & Trade Investment Fund invests $25 Million into Union Bank of Nigeria
Lagos, Nigeria – October 12, 2022 - Union Bank of Nigeria (“Union Bank”) and the Africa Agriculture and Trade Investment Fund (“AATIF”) are pleased to announce that the Bank has secured a $25 million funding line from AATIF to expand its agricultural business footprint. In response to the Nigerian government’s effort to reduce food imports and ultimately create a sustainable market for local farmers to sell their farm produce, Union Bank has anchored its food and agri-finance strategy around the promotion of local food processing.
Union Bank boasts a long-standing track record in the agricultural sector and has since risen to become one of the top 5 agricultural financiers in Nigeria, highlighting the sector's great potential for future expansion and innovation.
The Bank targets key value chains in rice, poultry, dairy, cassava, maize, and soybean, among others, and aims to provide tailor-made funding and technical support to the different actors along each of the selected value chains.
The funding from AATIF will support Union Bank’s expansion and outreach to Nigerian agri-businesses. The expected impact is linked to the development, and deployment of innovative agri-product offerings and an increase in funding directed to agricultural businesses. This is expected to further contribute to the growth of the competitive food and agricultural sector in Nigeria that is fully aligned with national priorities – including improving food security, increased agricultural production and local food processing.
AATIF’s facility will also be accompanied by technical assistance support to improve efficiency and accelerate impact within the sector.
Commenting on the funding agreement, Mudassir Amray, Chief Executive Officer/Managing Director of Union Bank, said:
“Union Bank has been a strong player and key contributor to agricultural development in Nigeria over decades and this partnership with AATIF will enable us extend our support to the sector at a critical time for the economy where local production and food security are fundamental priorities for the country. This funding will deliver the required financing and technical support to producers, processors, and entrepreneurs within the ecosystem.”
Also speaking about the partnership, Doris Köhn – Chair, AATIF Board of Directors said:
“Union Bank is a historic institution in Nigeria, and we welcome them as a new AATIF Partner Institution. Their work within the Nigerian agricultural sector to reach smallholder farmers, women, and youth has the potential to further serve as a cornerstone for the further growth of the country’s economy. We are excited to partner with the bank as it grows its capacity and outreach even further for years to come.”
About Union Bank Plc.
Established in 1917 and listed on the Nigerian Stock Exchange in 1971, Union Bank of Nigeria Plc. is a household name and one of Nigeria’s long-standing and most respected financial institutions. The Bank is a trusted and recognisable brand, with an extensive network of over 250 branches across Nigeria.
The Bank currently offers a variety of banking services to both individual and corporate clients including current, savings and deposit account services, funds transfer, foreign currency domiciliation, loans, overdrafts, equipment leasing and trade finance. The Bank also offers its customers convenient electronic banking channels and products including Online Banking, Mobile Banking, USSD banking, Debit Cards, ATMs, and POS Systems.
More information can be found at: www.unionbankng.com
Media Enquiries: Email JIUGBOH@unionbankng.com
Investor Relations – investorrelations@unionbankng.com
The Africa Agriculture and Trade Investment Fund (AATIF)
The Africa Agriculture and Trade Investment Fund is a public-private partnership dedicated to promoting the food / agri sector across Africa by providing patient capital and technical assistance. The fund provides debt financing to small, medium, and large-scale agribusinesses along the entire agriculture value chain, as well as financial institutions active in the sector. DWS is acting as investment advisor to AATIF. More information and contact details can be found on www.aatif.lu