Client presentation
United Bank for Africa (UBA) is one of the largest banks in Nigeria. It ranks 4th for the size of its balance sheet and has a network of 700 branches with over 7 million clients.
Project description
To support the growth of UBA’s SME loan portfolio, Proparco has just signed an NGN 1.9bn portfolio guarantee (EUR 4.7m) to share the credit risk. This ARIZ guarantee will automatically cover 50% of future SME loans. Part of the loans covered (at least 30%) will specifically concern SMEs in the education sector or SMEs owned by women.
Project impact
The ARIZ program was launched in 2008 and aims to reduce the financing gaps faced by small and medium-sized enterprises, in particular due to the lack of collateral guarantees or difficulties in preparing financial statements.