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Business News Thu, 21 May 2020

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Coronavirus: Afreximbank on course to raise over US$1bn in syndicated loan

The African Export-Import Bank (Afreximbank) vaulted market uncertainties caused by COVID-19 pandemic to successfully conclude a dual-currency Syndicated Loan, raising the equivalent of US$907.5 million, comprised of two tranches of US$485 million and EUR390.4 million.

Proceeds will be used for general corporate activities, and will strengthen the Bank’s liquidity position as it implements its US$3 billion Pandemic Trade Impact Mitigation Facility (PATIMFA).

Emirates NBD Capital Limited, MUFG Bank Ltd and Standard Chartered Bank acted as joint Global Coordinators, Initial Mandated Lead Arrangers and Bookrunners for the Facility. MUFG Bank Ltd also acted as Documentation Agent and Standard Chartered Bank as Facility Agent.

Launched on 9 April 2020 to a limited group of relationship banks at an amount of US$600 million equivalent, the facility was more than 50% oversubscribed allowing its increase to US$1.1 billion equivalent with an accordion feature.

Afreximbank President Prof. Benedict Oramah said that the market’s confidence in the Bank, despite the COVID-19 pandemic-induced volatility and uncertainty was a testament to the strength of Afreximbank’s investor relationships.

“The final deal size and the relatively short period over which the funding was raised reflect the high regard and confidence the market has in Afreximbank’s financial strength and its importance to the continent,” he said.

“Afreximbank intends, in due course, to issue additional syndicated loans. The Bank looks forward to the continued support of the loan market at that time,” he added.

Source: laudbusiness.com

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