ICD’s LOF facility will help to expand Jaiz Bank’s customer base by provision of Shariah-compliant financing
Tashkent, Uzbekistan: Mr. Ayman Sejiny, the CEO of the Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of IsDB Group, and Mr. Hassan Usman, the Managing Director & CEO of Jaiz Bank-Nigeria, signed a USD 25 Million Shariah-compliant Line of financing (LoF) agreement to support the SMEs in Nigeria, including those adversely affected by the COVID-19 outbreak.
Out of this USD 25 Million LOF, USD 10 Million is being allocated under the ICD’s USD 250 Million COVID-19 Support Package to help the private sector affected by the pandemic by leveraging on the expertise of the banking system of its member countries.
ICD’s LOF facility will help to expand Jaiz Bank’s customer base by provision of Shariah-compliant financing in response to growing demand for Islamic finance to support, among others, COVID-19 affected projects and industries.
On this occasion Mr. Ayman Sejiny, commented: “Continuous cooperation between ICD and Jaiz Bank, the pioneer in Islamic banking in Nigeria, will result in easier access by SMEs to Shariah- compliant financing that will meet their funding needs, as well as assist in keeping businesses open and preserving jobs, which is in line with ICD’s commitments to help the Nigerian economy to overcome the adverse impact of the COVID-19 pandemic and strengthen financial inclusion. We have no doubt that this LoF facility will provide much needed support to private sector businesses including those which have been affected by the pandemic.”
Mr. Hassan Usman stated that: “We are delighted with this partnership with ICD which has started in 2018 with a USD 20M Line of Finance to support SME’s in Nigeria, the Line was fully utilized by eligible SME’s with substantial portion going to the Agricultural sector. The facility was fully repaid earlier this year and has helped in generating over 791 direct jobs and put the Bank among the major Banks in repatriating non-oil export proceeds for the country. The additional USD 25M Line of financing facility will further enhance the Bank’s capacity to continue to provide support to the local private sector enterprises with substantial socio-economic impact. Mr Hassan Usman added: “We appreciate ICD for extending this facility in such a challenging time due to the COVID-19 Pandemic when economies need banks to further support to their customers, especially SMEs in order to foster economic growth and direct job creation.”
The Islamic Corporation for the Development of the Private Sector (ICD) is a multilateral development financial institution and is a member of the Islamic Development Bank (IsDB) Group. ICD was established in November 1999 to support the economic development of its member countries through the provision of finance for private sector projects, promoting competition and entrepreneurship, providing advisory services to the governments and private companies, and encouraging cross border investments. ICD is Rated A2’ by Moody’s, ‘A-’ by S&P and, A+ by Fitch. ICD establishes and strengthens cooperation and partnership relationships with an aim to establish joint or collective financing. ICD also applies financial technology (Fintech) to make financing more efficient and comprehensive.
Jaiz Bank PLC – the premier Islamic bank in Nigeria which has commenced its operations in January 2012 on a foundation of trust, professionalism and excellence to deliver innovative financial solutions and exceptional customer experience. The Bank started with a regional license obtained from the Central Bank of Nigeria to operate in the Northern part of the country and thereafter transformed into a national bank in May 2016 with a key presence in virtually all regions of the country. The Bank’s core values are built on 7 principles called RESPECT which stands for: Responsibility, Entrepreneurship, Simplicity, Partnership, Excellence, Customer focus and Trust. These core values drive the Bank towards achieving its vision to be the leader in ethical banking in Sub-Saharan Africa.
Jaiz Bank is publicly quoted on the Nigerian Stock Exchange (NSE) with a balance sheet size of N233 billion/USD483 Mn (as at YE 2020) from N12 billion in 2012. Despite the adverse impact of Covid pandemic, the Bank’s financing and investment assets also grew from over N30 billion in 2012 to N166billion/USD 344 Mn (as at YE 2020). Other critical parameters such as customer deposits, branch network and profitability have all been growing year–on–year since inception.