Pan-African trade bank raises $750m euro note for Nigeria, other borrowers

shakirudeen taiwo

June 29, 2017 6:31 PM

Afreximbank is a front line financial institution in the pursuit of effective trade and economic integration in Africa.

The President of African Export-Import Bank, Dr. Dr. Benedict Oramah

The Pan-African trade facilitating bank, African Export-Import Bank (Afreximbank) has successfully raised $750 million under its Euro Medium Term Note Programme.

According to the Executive Vice President, Finance, Administration and Baking Services, Mr Denys Denya, the fund is aimed at boosting lending and reducing the cost of funds to African borrowers. He also added that the programme success is indication of investors’confidence in the bank.

“The level of subscription and diversification of investors, coupled with the highly competitive pricing achieved, is testimony to the continued investor confidence in Afreximbank,” he said.

Afreximbank is a frontline financial institution in the pursuit of effective trade and economic integration in Africa. The bank in recent time has been involving in financing of corporate organization and trade facilitation in Nigeria and other African countries.

Details on the final subscription of the seven year tenured noted showed that 39 per cent of the allocation went to investors in Europe, 28 per cent to the United Kingdom, 19 per cent to Asia, and 7 per cent each to the Middle East and Africa and the United States offshore investors.

Mitsubishi UFJ Securities International Plc was the sole coordinator and joint lead manager/book runner, while Barclays Bank Plc, HSBC Bank Plc, Commerzbank and Standard Chartered Bank were joint lead managers and book runners.

Also, the bank has approved a $200 million industrialization liquidity facility for the Banque Misr (Bank of Egypt) for financing of small and medium scale enterprises (SMEs) and support light manufacturing in the country.

The Chairman of Banque Misr, Mr Mohamed Eletreby, commended Afreximbank for its continuing support for industrial development in Africa, while noiting that the facility would create opportunities for many informal businesses to be integrated into the formal economy.

shakirudeen taiwo

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