Fidelity Bank signs $40m cocoa export deal with Afrexim bank

A tripartite $40 million pre-export finance facility has been signed by Nigerian deposit money bank Fidelity Bank and AFREXIM Bank in support of JohnVents Industries.

The loan agreement was signed during the Fidelity International Trade and Creative Connect (FITCC) II, which took place in Houston, Texas, in the United States.

The Fidelity Bank-cohosted FITCC drew together a diverse group of attendees, including regulators, businesses, diplomats, and other guests.

AFREXIM Bank would supply the loan, a pre-export finance arrangement for JohnVents, while Fidelity Bank would serve as the local administrative agent.

The managing director and chief executive officer of Fidelity Bank, Nneka Onyeali-Ikpe, stated in a conversation with journalists that the loan signing shows the extent of the market opportunity in Nigeria for cocoa.

She said: “We are delighted to participate in the tripartite loan signing ceremony as it demonstrates the size of the opportunity in the Nigerian cocoa market and its potential to meet the demand of off-takers in the US.

“The ceremony also highlights the value of our partnership with AFREXIM Bank especially in providing much-needed credit to last mile beneficiaries to upscale their operations and cater to a global market. These align with our objectives for FITCC and we are thrilled to host the formal deal signing event here”, Onyeali-Ikpe said.

The two-day event, called FITCC Houston, had multiple goals in mind. These included expanding the number of Nigerian companies exporting to the US market, giving the diaspora market additional ethnic product options, and helping exporters develop the capacity to raise product quality and comply with international standards.

In her welcome address at the event, Onyeali-Ikpe said: “Developments on the global scene have necessitated the need to constantly seek viable alternatives as businesses work to stay competitive in a rapidly evolving macro-economic environment. On the supply side, businesses are waking up to the imperative of catering to an international customer base in order to hedge against currency devaluation risks, increase the reach of their products and to ultimately ensure the long-term sustainability of their ventures. Indeed, globalization has emphasized the need for businesses to improve in terms of cross border offerings and collaborations”.