BOAD grants a third refinancing facility of XOF8.5 billion to SONIBANK
Lomé, 10 June 2016. Mr. Christian Adovelande, President of the West African Development Bank (BOAD) and Mr. El Hadji Souley Oumarou, Managing Director of Société Nigérienne de Banque (SONIBANK), have signed a loan agreement under which BOAD will grant a third refinancing facility of XOF8.5 billion to SONIBANK.
The loan consists of a XOF5 billion “refinancing framework agreement” component and a “specialized comprehensive package” component of XOF3.5 billion to refinance the expansion of the company’s gas distribution capacity. This loan facility is part of a programme initiated by BOAD and KfW to support SMEs in the WAEMU region, by improving their access to credit from the commercial banking sector.
In his remarks, Mr. Christian Adovelande indicated that “this third financial assistance confirms BOAD’s commitment to financially support SMEs which are at the heart of the economic structure of our member countries. They therefore play a pivotal role in creating employment and wealth.”
In 2010, BOAD granted SONIBANK a first refinancing facility of XOF5 billion. The said facility included a refinancing framework agreement component involving XOF4 billion and a “specialized comprehensive package” component of XOF1 billion. This financial assistance was followed two years later by a second facility in the form of a refinancing facility involving XOF6 billion. These first two refinancing facilities benefitted 45 SMEs in various sectors of the economy, including agriculture, general trade, transport and services, and created nearly 500 direct jobs in Niger.
Mr. Oumarou, for his part, was of the view that the loan facilities from BOAD “have provided SONIBANK with a steady source of funding, enabling the bank to consolidate its position as a leader in the financing of SME/SMI investment projects in Niger.”
The current facility brings to XOF73,217 billion the total amount that BOAD has injected into Niger’s private sector, representing 16% of its total commitments to the country.
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