Afreximbank participates in Bank of Industry Nigeria’s syndicated facility of up to EUR 2-billion
African Export-Import Bank (Afreximbank) (www.Afreximbank.com) recently joined a London-based consortium of financial institutions to sign a landmark €2 billion syndicated term loan agreement for the Bank of Industry (BOI) of Nigeria.
Afreximbank serves as one of the initially designated lead arrangers, bookrunners and financing agents. The bank paid the participation amount of €175 million in two tranches in September 2024, of which tranche A was €115 million and tranche B was €60 million.
Afreximbank is also involved in the process of completing financial settlement and disbursement of up to €2 billion to all lenders, including an early-bird syndicate in August 2024 as loan agent. The BOI is expected to use proceeds from the facility to fund trade and trade-related projects for eligible businesses in Nigeria.
“This significant transaction underlines Afreximbank’s commitment to supporting Nigeria’s economic growth,” said gentlemen. Denys Denya, Senior Executive Vice President, Afreximbank. “By actively participating as lenders, bookrunners and agents, we not only provide critical financing to industrial banks but also facilitate access to critical resources that empower Nigerian businesses and drive sustainable development across the country.”
Dr. Olasupo Olusi, Managing Director, Industrial Bank, Said: “This landmark syndicated loan of up to €2 billion is a testament to the confidence of global financial institutions in the performance record of Industrial Bank and its key role in driving Nigeria’s industrial and economic transformation. We are particularly grateful to Africa Export The bank’s strong engagement and unwavering support for this transaction as lender and coordinator will enable us to further fund key projects, ultimately promoting sustainable growth and development for businesses across Nigeria.”
The loan is backed by a first demand guarantee and is divided into two tranches. Tranche A is guaranteed 85% of the principal and interest by the African Finance Corporation and 15% by the Central Bank of Nigeria (CBN). The principal and interest of Phase B are 100% guaranteed by the AFC. The loan has a term of three years, with quarterly repayments beginning after the first year.
Distributed by APO Group on behalf of Afreximbank.
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vincent city
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e-mail: press@afreximbank.com
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About Afreximbank:
The African Export-Import Bank (Afreximbank) is a pan-African multilateral financial institution whose mission is to finance and facilitate intra-African and external trade. For 30 years, the World Bank has been providing financing solutions through innovative structures to support the transformation of Africa’s trade structure, accelerate industrialization and intra-regional trade, thereby promoting Africa’s economic expansion. As a staunch supporter of the African Continental Free Trade Agreement (AfCFTA), the African Export-Import Bank launched the Pan-African Payments and Settlement System (PAPSS) and was adopted by the African Union (AU) as a payment settlement platform to support the African Continental Free Trade Agreement. implementation. African Continental Free Trade Area. The World Bank is working with the African Continental Free Trade Area Secretariat and the African Union to establish a US$10 billion adjustment fund to support countries that participate effectively in the African Continental Free Trade Area. As of the end of December 2023, Afreximbank’s total assets and contingencies exceeded US$37.3 billion, with shareholder funds reaching US$6.1 billion. Afreximbank has investment grade ratings from GCR (International Grade) (A), Moody’s (Baa1), Japan Credit Rating Agency (JCR) (A-) and Fitch (BBB). Afreximbank has evolved into a group entity consisting of the Bank, its impact fund subsidiary Africa Export Development Fund (FEDA) and its insurance management subsidiary AfrexInsure (together the “Group”). The bank is headquartered in Cairo, Egypt.
For more information, please visit: www.Afreximbank.com
