Jaiz Bank Plc, Nigeria’s leading non-interest banking products and services provider, has secured $25m Shariah-compliant line of financing from Islamic Corporation to support Small and Medium Enterprises’ (SMEs’) growth in Nigeria.
To facilitate timely disbursements of the fund, the Chief Executive of the Islamic Corporation for the Development of the Private Sector (ICD), Ayman Sejiny; and Jaiz Bank’s Managing Director and Chief Executive, Hassan Usman, have signed the $25m LOF agreement to support the targeted enterprises, especially those adversely affected by the COVID-19 outbreak.
The details of the pact indicate that out of the $25m funds provided, $10m is allocated under the ICD’s $250m COVID-19 support package to help the private sector affected by the COVID-19 pandemic by leveraging on the expertise of the banking system of its member countries.
A statement issued by Jaiz Bank on the deal on Sunday further disclosed that the ICD’s line of financing would help to expand Jaiz Bank’s customer base by the provision of Shariah-compliant financing in response to a growing demand for Islamic finance to support COVID-19 affected projects and industries, among others,.
The statement reads: “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.
“It will also preserve 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”, it added.
