Bahamas Development Bank secures US$30 million Afreximbank facility to bolster trade finance operations

African Export-Import Bank (Afreximbank) today in Georgetown, Guyana, entered into an agreement to provide a US$30-million term loan facility to the Bahamas Development Bank (BDB) to bolster its trade finance operations and provide essential support to indigenous business organizations in The Bahamas.

The facility to support the recapitalization of BDB was signed by Kanayo Awani, Executive Vice President, Intra-African Trade Bank, Afreximbank, and Nicholas Higgs, Managing Director of BDB. The signing took place on the sidelines of the final day of the Second AfriCaribbean Trade and Investment Forum (ACTIF2023). The loan facility will be in place for seven years.

Following the signing, Executive Vice President Awani said that the facility to BDB was aligned with the Bank’s commitment to support the economic development of Africa and its Diaspora.

“By recapitalizing the Bahamas Development Bank and focusing on trade finance and SME support, we're not just investing in financial resources, but in the prosperity, resilience and growth of the nation of The Bahamas,” she said. “This initiative underscores Afreximbank’s commitment to empowering businesses, stimulating trade and driving economic sustainability in The Bahamas.”

Mrs. Awani emphasized the importance of BDB in facilitating trade finance activities, which are crucial for both domestic and international trade. She added that the facility would enhance trade and commerce, ultimately leading to economic prosperity in The Bahamas, and described the recapitalization as a pivotal step in ensuring that BDB remained a robust and effective financial institution.

Nicholas Higgs, BDB’s Managing Director, stated, “The signing of this term sheet represents the realization of a vision set forth by Prime Minister of The Bahamas, Philip Davis, with support from Bahamas Development Bank Chairman, Senator Quinton C. Lightbourne. This loan underscores the administration's steadfast commitment to building meaningful international partnerships and driving micro, small, and medium-sized enterprise development across all islands of The Bahamas.

We appreciate that Afreximbank aligns with our mandate as a national development bank, and we extend our sincere thanks for their support, which will be reflected through various industries on multiple islands for the benefit of all Bahamians”.

Under the terms of the loan contract, which will be finalized with the Bahamian Ministry of Finance, BDB will direct the facility toward providing improved access to trade finance solutions to Bahamian businesses exporting to, or importing from, other Caribbean countries.

By directing financial resources toward indigenous corporates in such key sectors as tourism, agriculture, manufacturing, and services, the facility would stimulate entrepreneurship, create employment opportunities, and foster innovation.