Stanbic IBTC Bank Secures CNY800 Million 3-Year Loan Facility from China Development Bank
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Stanbic IBTC Bank, a subsidiary of the Standard Bank Group, has signed a CNY800 million facility agreement with the China Development Bank (CDB). The 3-year term loan facility is part of the ongoing cooperation between Stanbic IBTC and CDB, designed to enhance CNY liquidity in Nigeria and support trade and investment between Nigeria and China.
The agreement falls under the wider Standard Bank and CDB cooperation framework, which has historically enabled collaboration in trade finance, infrastructure development, and investment facilitation across Africa. The latest deal directly supports the Stanbic IBTC Africa-China strategy, aimed at bridging financing and trade gaps between African markets and China, Africa’s largest trading partner.
A senior Stanbic IBTC delegation, led by Chief Executive Wole Adeniyi and Eric Fajemisin, Executive Director of Corporate and Transaction Banking, visited CDB’s head office in China for the official signing and exchange of agreements.
The Stanbic IBTC loan facility is designed to provide CNY funding that can be deployed to Nigerian corporates across sectors such as manufacturing, agriculture, energy, and infrastructure. The facility is intended to address a critical challenge in Nigeria China trade, which is the limited availability of CNY liquidity within African markets.
Nigerian corporates have faced hurdles in accessing CNY-denominated financing, often relying on third-party currencies like the US dollar, which introduces foreign exchange risks and transaction costs. Stanbic IBTC will enable smoother, more cost-effective cross-border trade transactions, by offering direct access to CNY funding.
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China remains Africa’s top trading partner, with bilateral trade volumes exceeding USD250 billion annually. Nigeria, as Africa’s largest economy, imports a significant volume of machinery, electronics, and consumer goods from China, while exporting crude oil, natural gas, and agricultural products.
This facility positions Stanbic IBTC Bank to better serve Nigerian businesses operating within this vital trade corridor.
The 3-year tenure of the Stanbic IBTC loan facility offers a medium-term funding horizon that allows Nigerian corporates to strategically plan and execute trade, investment, and expansion initiatives involving China. The facility also strengthens Stanbic IBTC’s competitive standing in Nigeria’s banking sector by expanding its trade finance capabilities and client offerings.
At a national level, the transaction supports Nigeria’s economic diversification agenda by facilitating trade finance for sectors critical to reducing reliance on oil revenues. The financing is complementary to Nigeria’s participation in China’s Belt and Road Initiative (BRI), through which China has made substantial infrastructure investments across Africa.
Regionally, the partnership between Standard Bank Group and CDB exemplifies how African banks can collaborate with global financial institutions to unlock cross-border capital flows and trade opportunities. Standard Bank Group, with operations in 20 African countries, is positioned to extend similar facilities across the continent, enhancing Africa’s integration into global trade networks.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.
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