AfreximBank raises US$1,2bn syndicated loan facility
THE AfreximBank has concluded a new three-year US$1,2 billion syndicated term loan facility whose proceeds would largely be used to refinance existing facilities.
AfreximBank said in a statement that the facility, which has been oversubscribed, was launched to a limited group of relationship banks in November last year.
“AfreximBank on 21 December 2021 successfully concluded a new three-year syndicated term loan facility, raising US$1,2 billion,” it said.
“Proceeds from the facility will be used to refinance existing facilities, general corporate purposes and for the payment of fees and costs associated with the facility.
“Launched on 25 November 2021 to a limited group of relationship banks at a launch amount of US$600 million equivalent, the facility was more than 2,3 times oversubscribed allowing for AfreximBank to subsequently upsize the amount to US$1,2 billion while also scaling back the banks on the deal,” said the regional financier.
It said the transaction, launched against the drop of the volatility that resulted from the announcement of the Omicron variant of Covid-19, is a testament to the strength of AfreximBank’s investor relationships and the high regard and confidence that the market has for the bank’s financial strength and its importance to the continent.
First Abu Dhabi Bank PJSC, Rand Merchant Bank, a division of FirstRand Bank Limited (London Branch) and Standard Chartered Bank acted as joint global coordinators, mandated lead arrangers and book runners on the facility.
Standard Chartered Bank acted as documentation agent and is the facility agent for the transaction.
AfreximBank) is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade.
The regional financial institution deploys innovative structures to deliver financing solutions that support the transformation of the structure of Africa’s trade, accelerating industrialisation and intra-regional trade, thereby boosting economic expansion in Africa.
The bank has a rich history of intervening in support of African countries in times of crisis.
Through the Pandemic Trade Impact Mitigation Facility (PATIMFA) launched in April 2020, AfreximBank has disbursed more than US$6,5 billion in 2020 to help member countries manage the adverse impact of financial, economic, and health shocks caused by the Covid-19 pandemic.
A key supporter of the African Continental Free Trade Agreement AfCFTA, AfreximBank has completed the development of a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the AfCFTA.
AfreximBank is working with the AU and the AfCFTA secretariat to develop an adjustment facility to support countries in effectively participating in the AfCFTA.
At the end of 2020, the bank’s total assets and guarantees stood at US$21,5 billion, and its shareholder funds amounted to US$3,4 billion.
AfreximBank disbursed more than US$42 billion between 2016 and 2020.-eBusiness Weekly
