The African Export-Import Bank (Afreximbank) has successfully secured another facility, but its first ever Samurai Syndicated Term Loan Facility, with equivalent of $150 million.
It has an all-pricing of 1.8 per cent per annum for the dollar tranche and 0.80 per cent for the tranche denominated in Japanese Yen.
The facility comprises two tranches of 6.2 billion Japanese Yen and $100 million, which Bank of Tokyo Mitsubishi UFJ (MUFG) acted as sole Coordinator, Bookrunner, Facility and Documentation Agent Bank, while Bank of Taiwan, Gunma Bank, Shikoku Bank and Mitsubishi UFJ Trust and Banking all joined the Facility in the primary phase.
The move is strategic to African development as the Asian country has one of the lowest cost of funds presently, which Afreximbank is taking advantage of in making fund available for trade and projects for economic integration in the continent.
The Facility had initially been for the equivalent of $100 million, with the two tranches at four billion Japanese Yen and $70 million, but had incorporated an accordion feature in order to accommodate further regional investors.
Afreximbank’s Executive Vice President for Finance, Administration and Banking Services, Denys Denya, welcomed the high participation in the facility as a reflection of the willingness of those institutions to support the cause of development in Africa.
Denya affirmed that the proceeds of the facility would be used towards general corporate and trade related purposes. The all-pricing for the Facility is 1.8 per cent per annum for the USD tranche and 0.80 per cent for the JPY tranche.
Meanwhile, Afreximbank’s has reiterated that innovative financial solutions like factoring and credit insurance offer keys to the growth of small and medium-sized enterprises (SMEs) in Africa andenhance regional integration.