Following its contribution to the growth of Islamic banking in Nigeria and Africa, the non-interest banking unit of Sterling Bank Plc has attracted a $15 million facility from a multilateral development financial institution, Islamic Corporation for the Development of the Private Sector.
Sterling Bank, in a statement, noted that ICD extended the facility to it in view of its ability to use non-interest banking contracts to structure transactions in innovative ways and the judicious use of past facility extended to it, adding that the fund would provide the much needed liquidity to finance additional projects for the benefit of the public.
While assuring that it would make good use of the facility extended to it, the bank also stated that it would continue to support the overall objectives of ICD, which is mainly to finance projects and provide a wide range of financial products and services, support the development of Islamic financing in Nigeria and beyond, through business expansion and complement the role played by ICD in the promotion of the private sector as a vehicle for boosting economic growth and prosperity.
It would be recalled that Sterling Bank, in 2014 and 2015, also received a line of US$25 million from the International Islamic Finance Trade Corporation and US$30 million from the ICD. Both institutions are members of the Islamic Development Bank Group.
In the same vein, the Central Bank of Nigeria has approved an array of innovative non-interest financial instruments in 2016, which will keep the franchise ahead of industry performance.
