The African Export-Import Bank (Afreximbank) has sealed a US$300mn syndicated loan with 16 investors and banks from China and Taiwan, aimed at boosting trade between Africa and Asia.
The five-year facility was guaranteed by Export-Import Bank of China (China Exim Bank) and open to investors from China and Taiwan only. Standard Chartered Bank acted as the sole co-ordinator, book runner and mandated lead arranger.
Commenting on the facility, which according to Afreximbank is its first-ever China/Taiwan-specific loan, the bank’s executive vice-president Denys Denya says: “This syndicated facility helps position Afreximbank to strengthen its role in the development of trade between Africa and the rest of the world, in particular China and the rest of the Far East. The conclusion of this facility demonstrates Afreximbank’s increasing ability to attract much-needed resources into Africa and to fund trade finance-related investments that will have a positive impact on Sino-Africa trade.”
Denya adds that the loan will help Afreximbank to achieve its liability management objective of reducing the cost of funds and diversifying its liability book by geography, investor type and tenor.
The loan was closed on September 12, just two months after Afreximbank and China Exim Bank signed a US$1bn co-operation agreement to promote and finance the development of industrial parks and special economic zones across Africa, as well as providing capacity for light manufacturing and primary processing of raw materials and commodities.
Source: Global Trade Review