Afreximbank has secured a $2 billion syndicated loan facility, finalized on March 9, 2024, marking the largest such borrowing in the institution’s history. The dual-tranche loan comprises $1.73 billion in U.S. Dollars and €228 million (equivalent) in Euros.
The facility, initially launched at a $1.5 billion equivalent, garnered significant interest from investors, resulting in oversubscriptions totaling $2.36 billion equivalent. Lenders were scaled back to the final amount of $2 billion.
According to Afreximbank, the funds will be allocated to refinancing existing debt and supporting general corporate needs. This move comes as the bank continues to expand its role in facilitating and financing intra-African trade and economic development.
Chandi Mwenebungu, Managing Director of Treasury and Markets, and Group Treasurer at Afreximbank, stated, “This transaction is the largest ever syndicated facility borrowing by Afreximbank. It is a clear demonstration of the global investors’ confidence in the Bank’s credit story. This, clearly, affirms the Bank’s robust and undisputed access to international markets.”
The loan’s syndicate included 31 lenders representing financial institutions across Europe, the Middle East, Asia, and Africa. Mashreqbank PSC, MUFG Bank, Ltd., and Standard Chartered Bank served as Joint Global Coordinators, Initial Mandated Lead Arrangers, and Bookrunners for the facility. Standard Chartered Bank as well fulfilled the roles of Documentation Agent and Facility Agent.
Afreximbank, established in 1993, is a pan-African multilateral trade finance institution owned by African governments, private and institutional investors, and Afreximbank itself. The bank’s mandate focuses on promoting intra-African trade, financing industrial projects, and supporting the continent’s economic integration. Recent years have seen Afreximbank increasingly involved in larger-scale financing initiatives aimed at bolstering Africa’s resilience to global economic shocks.
The successful completion of this loan facility underscores Afreximbank’s growing prominence in international financial markets and its ability to attract substantial investment despite a challenging global economic environment. The bank has not yet publicly detailed specific projects earmarked for funding with the proceeds, and further announcements regarding the allocation of funds are expected in the coming months.
