Afreximbank gets record $458m and €406.5m loans for debt repayment and trade finance

Afreximbank2The African Export-Import Bank (Afreximbank) says it has closed general syndication stage of what it calls the largest ever term loan facility in the Bank’s history.

The bank announces the conclusion of a $458 million and €406.5 million two-year, dual tranche facility, in a press statement issued in Cairo, July 8, 2015 and copied to

The facility, which closed on July 6, it says attracted aggregate commitments totalling in excess of the equivalent of $1,000 million, with the final facility size being set at $458 million and €406.5 million, after a scale-back by the initial mandated lead arrangers.

“This landmark facility positions Afreximbank’s to strengthen its support to African businesses through much-needed new investments to help build value addition as we seek to move the continent away from primary products to intermediate manufacturing and to increased processing of export goods,” Jean Louis Ekra, President of Afreximbank, was quoted as saying in the statement.

He described that the large number of institutions participating in the syndication as a reflection of the strong confidence which Afreximbank enjoyed from its financing partners. A total of 34 banks joined the facility, it said.

According to the Bank, the facility will be used to repay existing debt, with further proceeds being used for trade finance and general corporate purposes.

The statement indicated that, launched into general syndication on May 20, 2015, the facility was initially supported by the Arab Banking Corporation (B.S.C.); The Bank of Tokyo-Mitsubishi UFJ, Ltd.; Commerzbank Aktiengesellschaft, Filiale Luxemburg; Credit Europe Bank N.V.; Emirates NBD Capital Limited; Rand Merchant Bank, a division of FirstRand Bank Limited (London Branch); HSBC Bank plc.; ICBC (London) plc.; Investec Bank plc.; The Korea Development Bank; Mizuho Bank Ltd.; National Bank of Abu Dhabi PJSC; The Standard Bank of South Africa Limited, Isle of Man Branch; and Standard Chartered Bank, as initial mandated lead arrangers and bookrunners.

They were subsequently joined by Abu Dhabi Commercial Bank PJSC; Bank Sohar S.A.O.G.; China Construction Bank Corporation, Johannesburg Branch; Commercial Bank of Kuwait K.P.S.C.; Doha Bank Q.S.C.; The Commercial Bank (Q.S.C.); Qatar National Bank Paris SAQ; and Sumitomo Mitsui Banking Corporation Europe Ltd., which came in as mandated lead arrangers, it added.

Commerzbank Aktiengesellschaft, Filiale Luxemburg, is the sole coordinating bank and documentation agent, while Standard Chartered Bank is the facility agent.

By Emmanuel K Dogbevi

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