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Afreximbank anticipates raising over $1bn in syndicated loan despite COVID-19 - Daily News Egypt

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Afreximbank anticipates raising over $1bn in syndicated loan despite COVID-19

Market’s confidence in bank, despite current uncertainty, was testament to strength of Afreximbank’s investor relationships


The African Export-Import Bank (Afreximbank) has bucked market uncertainties caused by the ongoing coronavirus (COVID-19) pandemic to successfully conclude a dual-currency syndicated Loan, raising the equivalent of $907.5m.

The loan is comprised of two tranches of $485m and €390.4m. Proceeds will be used for general corporate activities, and will strengthen the bank’s liquidity position as it implements its $3bn Pandemic Trade Impact Mitigation Facility (PATIMFA).

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 the Documentation Agent, with Standard Chartered Bank acting as Facility Agent.

Launched on 9 April to a limited group of banks at an equivalent amount of $600m, the facility was more than 50% oversubscribed allowing its increase to $1.1bn equivalent. This also came with an accordion feature, allowing companies the option to increase line of credit with a lender.

The market’s confidence in the bank, despite the pandemic-induced volatility and uncertainty was a testament to the strength of Afreximbank’s investor relationships, according to Afreximbank President Benedict Oramah.

“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.

He added, “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.”

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https://dailyfeed.dailynewsegypt.com/2020/05/16/afreximbank-anticipates-raising-over-1bn-in-syndicated-loan-despite-covid-19/
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