The African Export-Import Bank (Afreximbank) on Wednesday announced it had secured a US$500 million Dual Tranche Syndicated Term Loan Facility to energise its long term financing strategy to pan African causes.
The loan was coordinated by the Industrial and Commercial Bank of China Limited (ICBC) and Standard Chartered Bank, and was hailed by Afreximbank as a “significant milestone in our financing strategy”.
“The success of the deal was a reflection of the critical importance of regional investors from Asia, to Afreximbank’s fundraising programmes,” Denys Denya, Afreximbank’s Senior Executive Vice President, said.
The deal recognises the strong trade and investment ties between Asia and the broader African region.
The Facility, initially launched at US$400 Million, was very well received in syndication, achieving substantial oversubscription from a total of 12 banks, Afreximbank said.
Originally launched with a target of US$400 million, the facility received an overwhelmingly positive response during syndication.
This resulted in a substantial oversubscription from a total of 12 banks, prompting an increase in the facility amount to US$500 million.
Despite the increase, the demand from lenders was so high that allocations had to be scaled back, according to Afreximbank.
The successful completion of this syndicated term loan facility is expected to enhance Afreximbank’s liquidity as well as strengthens its ability to support African trade and economic development.
The Facility’s oversubscription is was also hailed a confidence boost from the international banking community towards Afreximbank’s robust financial health and strategic vision.
The loan facility comprises two tranches: Tranche A with a tenor of three years and Tranche B with a tenor of five years.
The funds raised are earmarked for general corporate purposes, which will support Afreximbank’s ongoing and future projects aimed at boosting trade and economic integration across Africa.
The successful syndication of this loan facility represents a precedent for future fundraising activities and solidifying Afreximbank’s position as a leading financial institution in the region.
Meanwhile, the 31st Annual General Meeting (AGM) of Afreximbank commenced on Wednesday in Nassau, Bahamas.
The event drew senior government officials, corporate leaders, entrepreneurs, investors, heads of development institutions, and representatives from non-governmental organizations, among others.
This year’s AGM and Advisory Group Meetings, themed “Owning Our Destiny: Economic Prosperity on the Platform of Global Africa,” are being held in the Caribbean for the first time.
This stems from the AfriCaribbean Trade and Investment Forum (ACTIF), which is a recent initiative by Afreximbank to boost trade and investment between Africa and the Caribbean.
The first edition was held in September 2022 in Barbados, focusing on establishing business connections.
Building on this success, Guyana hosted the second ACTIF in October 2023.
Both events aimed to bridge the gap between the regions, fostering increased trade and investment opportunities.
