The African Export-Import Bank (Afreximbank) today announced the closing of the general syndication stage of the largest ever term loan facility in the Bank’s history, with the conclusion of a $458 million and EUR406.5 million two-year, dual tranche facility.
Afreximbank reported that the facility, which closed on 6 July, attracted aggregate commitments totalling in excess of the equivalent of US$1,000 million, with the final facility size being set at $458 million and EUR406.5 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,” said Jean Louis Ekra, President of Afreximbank.
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.
Launched into general syndication on 20 May 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.
According to Afreximbank, the facility will be used to repay existing debt, with further proceeds being used for trade finance and general corporate purposes.
Commerzbank Aktiengesellschaft, Filiale Luxemburg, is the sole coordinating bank and documentation agent, while Standard Chartered Bank is the facility agent.
Afreximbank was established in October 1993, under the auspices of the African Development Bank, by African governments, African financial institutions and private investors as well as non-African financial institutions and private investors as a regional multilateral development financial institution with the mandate to promote the export of African goods by financing and facilitating intra- and extra-African trade. It is headquartered in Cairo and has three branch offices located in Harare, Abuja and Abidjan.
The Bank provides financing to private and public-owned enterprises, with no direct lending to governments. Its history of strong recoveries and its dual recourse lending have kept historic credit performance at levels superior to those of financial institutions operating in similar environments. Afreximbank enjoys supranational status, as recognised and registered on 10 April 1997 in accordance with Article 102 of the United Nations Charter, which mitigates country risk for lending through it to African entities. It also has the status of preferred creditor in its Member States.
The Bank is currently rated BBB- (negative outlook) by Fitch and Baa2 (negative outlook) by Moody’s.
Manal Mounir Hendy