The African Export-Import Bank (Afreximbank) has demystified market uncertainties caused by COVID-19 pandemic and successfully concluded a dual-currency Syndicated Loan, equivalent of US$907.5 million.
The loan comprised of two tranches of US$485 million and EUR390.4 million.
A statement by Tito Alai of the Bank’s Communications department on Friday, said that the proceeds will be used for general corporate activities and would strengthen the Bank’s liquidity position as it implements its US$3 billion Pandemic Trade Impact Mitigation Facility (PATIMFA).
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.
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 April 9, 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.
The Syndicated Facility Lenders are: Emirates NDB Capital Limited – Coordinator, Mandated Lead Arranger and Bookrunner; MUFG – Coordinator, Mandated Lead Arranger and Bookrunner; Standard Chartered Bank -Coordinator, Mandated Lead Arranger and Bookrunner; Bank ABC – Mandated Lead Arranger and Bookrunner; HSBC Bank plc – Mandated Lead Arranger and Bookrunner; State Bank of India, WBB Bahrain – Mandated Lead Arranger and Bookrunner.
Others include: Industrial and Commercial Bank of China, London Branch – Mandated Lead Arranger and Bookrunner; Mizuho Bank Ltd – Mandated Lead Arranger and Bookrunner; RMB – Mandated Lead Arranger and Bookrunner; Sumitomo Mitsui Banking Corporation Europe Limited – Mandated Lead Arranger and Bookrunner; Commerzbank Aktiengesellschaft, Filiale Luxemburg – Mandated Lead Arranger; and First Abu Dhabi Bank PJSC – Mandated Lead Arranger.