The Africa Export-Import Bank (Afreximbank) has raised $2 billion through a three-year dual-tranche syndicated loan, marking the largest transaction of its kind in the bank’s history, it said on Monday.
According to a statement from the Cairo-based lender, the deal includes $1.73 billion and 228 million euros, with the funds set to be used for refinancing existing facilities as well as general expenditures.
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The bank had initially targeted $1.5 billion but increased the amount due to strong investor demand. It did not disclose the cost of the loan, according to Reuters.
A total of 31 lenders from Europe, the Middle East, Asia, and Africa took part in the transaction. Mashreqbank PSC, MUFG Bank, and Standard Chartered Bank served as joint global coordinators, lead arrangers, and bookrunners for the deal.
Afreximbank has faced disagreements with parts of the international financial community over whether it holds “preferred creditor status” or should absorb losses on loans issued to countries that have defaulted on debt, including Ghana and Zambia.
Earlier this year, the bank ended its relationship with credit ratings agency Fitch, stating a “firm belief” that the agency’s rating approach no longer reflected an understanding of the bank’s mission and mandate.
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Image Credit: Wallstreet Africa Technologies LTD
