Afreximbank planning to raise $3 billion on financial markets in 2016

May 09, 2016

The institution wants to promote the financing of intra-African trade.

Afreximbank is planning to raise three billion dollars (€2.6 billion) on regional and international markets in 2016 to promote trade finance.

"We are preparing to issue a Eurobond soon. We will also go on the syndicated loans market and are prepared to issue bonds on regional markets, so that we can finance activities in local currencies," said the institution's president Benedict Okey Oramah, quoted by Reuters.

The issuance of the Eurobond is expected before the end of June 2016, while the issuance of bonds on regional markets is planned for the last quarter of this year, for a cumulative amount of approximately $200 million.

Afreximbank is also planning to increase the deposits of 37 central banks from three billion to $10 billion in a bid to meet the increasing demand for funding.

The bank is currently finalising its financing strategy for intra-African trade. According to Benedict Oramah, it aims to increase trade between African countries by supplying the financial means necessary for the production and distribution of goods and services.

One of the focuses will be to put processing companies in connection with commercial export companies, which will manage their exports in order to allow them to focus on production.

In addition, the bank wants to help businesses diversify their exports. The president of Afreximbank said this would help lower the continent's reliance on exports of raw materials.ADNFCR-2976-ID-801818028-ADNFCR