WED, SEPT 12 2018-theG&BJournal-The African Export-Import Bank (Afreximbank) has signed two landmark agreements with two Chinese financial institutions and the Nordic Investment Bank (NIB) which it says will be used to expand support to African businesses seeking to diversify and expand their trade activities as well as finance eligible investments, which mainly include projects within infrastructure.
The Bank’s President Prof. Benedict Oramah said in Cairo during the financing facilities agreement with the Chinese institutions that the facilities were a $500-million facility with the China Development Bank and a $350-million facility with Bank of China.
Oramah said the China Development Bank facility is to enable Afreximbank support trade enabling infrastructure projects across Africa while the $350 million from the Bank of China is targeted at direct bank-to-bank loans, participation in syndicated loans and trade finance, among others.
Both loan agreements were secured during the just concluded Forum for China-Africa Cooperation (FOCAC 2018), held in Beijing from 3 to 4 September.
The Bank of China agreement followed the signing of a memorandum of understanding (MoU) between the Chinese bank and Afreximbank. Under the terms of the MoU, the two institutions committed to collaborating in the identification of co-financing and co-investing opportunities; cooperating in projects and transactions to enhance trade and investment between China and Africa; and supporting projects under the “Belt and Road” Initiative in order to bring shared development opportunities to China and Africa.
The President said that Afreximbank took advantage of the participation to hold meetings with several high-level personalities, including Presidents Macky Sall of Senegal, Faure Gnassingbé of Togo and Denis Sassou Ngueso of the Republic of Congo
Meanwhile, Afreximbank today announced another 10-year financing facility deal with The Nordic Investment Bank (NIB) worth EUR 100 million to finance various infrastructure projects in African countries.
The EUR 100 million made available to Afreximbank under the joint facility will be used for financing eligible investments, which mainly include projects within infrastructure, such as energy, telecom, industrial parks and special economic zones, roads, railways and harbours.
According to a press statement by Afreximbank, the loan programme will allow NIB to support export projects that include service and equipment deliveries from the Nordic and Baltic countries.
‘’All projects considered for financing will be analysed by NIB from a sustainability perspective for their impact on productivity as well as any potential impact on climate change mitigation and the environment,’’ the statement said.
“We are pleased to announce our cooperation with Afreximbank in facilitating investments in African countries. Providing long-term capital to projects of mutual interest supports innovation and environmental protection“, says Henrik Normann, NIB President & CEO.
“The facility will enhance Afreximbank’s capacity to implement our current strategy, which prioritizes industrialization and export development, by providing medium to long-term financing for trade enabling infrastructure projects in our member states,” said Amr Kamel, Executive Vice President, Business Development and Corporate Banking, at Afreximbank. “We are confident that the facility will have a significant impact on the Africa continent in terms of industrial development.
“We are delighted that the Nordic Investment Bank has chosen to partner with us in the pursuit of Africa’s industrialization and export development. This collaboration will contribute to fostering sustainable economic growth and development in Africa, among other development outcomes,” added Mr. Kamel.
