Afreximbank secures $450m credit facility from AfDB
The $450million credit facility includes a 3-year $150 million unfunded risk participation agreement or guarantees and a 4-year $300 million for trade finance.The pan Africa multilateral institution, African Export-Import Bank (Afreximbank) has secured a $450 million trade finance facility from the African Development Bank (AfDB). The $450million credit facility includes a 3-year $150 million unfunded risk participation agreement or guarantees and a 4-year $300 million for trade finance. In a statement issued by the AfDB disclosed that the credit facility will aid the expansion of Afreximbank's risk-bearing capacity and enhance trade by providing more liquidity financial institutions in Africa. "This composite facility will help to expand Afreximbank's risk-bearing capacity for the confirmation of letters of credit and to support more trade through the provision of increased liquidity to local financial institutions and corporates in Africa. "Given Afreximbank's commitment to helping African economies diversify their exports, strengthen trade value chains and promote value addition, this facility will contribute to macroeconomic resilience in at least 28 countries" the bank said. Afreximbank President Benedict Oramah said "the philosophy behind it (strategic plan) is to build solid export manufacturing capacities." As recently unveiled by Afreximbank, covering 2017 and 2021, the institution plans to fund intra-African trade, export development, industrialisation and financial soundness across the Africa.