Stanbic IBTC Bank has successfully negotiated a three-year CNY800 million ($125 million equivalent) term loan facility with China Development Bank, strengthening Nigeria’s access to Chinese capital markets and enhancing trade finance capabilities.
The landmark agreement, executed under the strategic partnership between Standard Bank Group and China Development Bank, provides direct access to Chinese Renminbi liquidity for Nigerian corporations engaged in Africa-China trade corridors.
Chief Executive Wole Adeniyi described the facility as transformative for the bank’s ability to serve clients involved in bilateral trade and investment flows between Africa and China, representing a significant expansion of available financing options.
“This facility provides us with direct access to much-needed Renminbi liquidity, enabling us to better serve our clients involved in Africa-China trade and investment,” Adeniyi explained, emphasizing the strategic importance of the partnership.
The collaboration reinforces Standard Bank Group’s established relationship with China Development Bank, built on shared objectives for sustainable economic development across the African continent. The facility enables enhanced financing solutions for Nigerian businesses pursuing Chinese market opportunities.
The agreement supports Stanbic IBTC’s broader Africa-China strategy, positioning the institution as the preferred banking partner for enterprises seeking to participate in the expanding economic relationship between the two regions.
Trade finance capabilities will particularly benefit from the facility, as Nigerian exporters and importers gain improved access to Renminbi-denominated financing products. This addresses longstanding challenges in managing currency exposure and settlement processes for China-focused transactions.
The timing coincides with increased bilateral trade volumes between Nigeria and China, with Chinese investment in Nigerian infrastructure, manufacturing, and technology sectors creating demand for specialized financial services.
Nigeria’s participation in China’s Belt and Road Initiative creates additional opportunities for project financing and trade facilitation, areas where the new facility will provide enhanced support capabilities.
The partnership extends beyond traditional lending, encompassing advisory services, risk management products, and cross-border payment solutions tailored to Nigeria-China business relationships. Aliyu Abdullahi Ibrahim
About The Author
