Thursday, 30 July 2015

News Release: Afreximbank Works To Increase African Footprint As It Celebrates Landmark Term Loan

The African Export-Import Bank (Afreximbank) is working diligently to increase its footprints in major countries across the continent and to broaden its role in African trade finance, Bank President Jean-Louis Ekra, said today in Frankfurt, Germany.

Speaking during a commemorative ceremony to mark the conclusion of a $458 million and EUR406.5 million two-year, dual tranche facility, the largest ever term loan facility in the Bank’s history, Mr. Ekra said that facility would boost Afreximbank’s effort to finance new investment in Africa’s economies as it strove to build and retain more value addition into the continent’s resource based economies.

He said that the fact that the facility oversubscribed, and attracted aggregate commitments totalling in excess of $1 billion, was a testimony to the confidence which the lenders had in Afreximbank and reflected the continued excellent relationship that the Bank enjoyed with its banking partners.

On the Bank’s performance, the President told the guests that Afreximbank recorded strong earnings growth in 2014 as a result of a 27 per cent growth in volume of loans across 25 African countries and that it achieved an 18 per cent growth in net income at $104.9 million from $89.08 million in 2013, with all efficiency indicators remaining commendable.

“Earnings per share stood at $2,359 compared to $2,080 in 2013,” added Mr. Ekra. “The average return on shareholders’ equity and average return on assets remained high by industry standards at 13.5 per cent and 2.2 per cent respectively.”

He informed the guests that he would be completing his tenure as President of Afreximbank in a matter of weeks and expressed gratitude for the strong relationship and partnership he had enjoyed from the financial institutions present. He appealed to them to extend similar support to his successor, Dr. Benedict Oramah, noting that in selecting him, the Bank’s shareholders had sought to ensure that a steady hand took up the leadership of the Bank.

Earlier, Florian Witt, Managing Director for Africa at Commerzbank, which served as the sole Coordinating Bank and Documentation Agent for the facility, had thanked Afreximbank for selecting his institution to lead the syndication and the syndicate of banks for their participation in the landmark transaction.

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.

Manal Mounir Hendy
External Communications

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