Deutsche Bank and Ecobank Nigeria have signed a memorandum of understanding (MoU) to expand their trade finance relationship.

The MoU sets out arrangements that will enable Nigerian buyers to import US agricultural products on letter of credit (L/C) terms.

Credit guarantees

Under the terms of the MoU, Deutsche Bank will provide the US Department of Agriculture's export credit guarantee programme known as GSM-102 to Ecobank Nigeria.

The GSM-102 programme provides credit guarantees to encourage the financing of commercial exports of US agricultural products.

The programme diminishes the financial risk to lenders while providing competitive credit terms to buyers.

L/C arrangements

Ecobank Nigeria will use irrevocable US dollar denominated L/Cs for the import of eligible US agricultural products.

Deutsche Bank will advise, confirm and negotiate the L/Cs and provide post-shipment financing in accordance with the GSM-102 programme regulations.

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