The African Export-Import Bank (Afreximbank) this week raised $1.3 billion, the largest-ever debt issuance by this multilateral financial institution aimed at financing trade in Africa.
“The transaction is an important milestone for Afreximbank, marking the second time the bank has accessed the US markets and is the institution’s largest transaction in the debt financial markets to date, meeting several primary objectives of the risk management strategy, which includes diversification by geography and investor types,” reads a note sent to Lusa.
In the note, Afreximbank specifies that it divided the total of 1.3 billion dollars in two issues, one of 600 million dollars of five-year debt with an interest rate of 2.63% and another of 700 million dollars at 10 years, with a premium of 3.79%, having received offers totaling 4.5 billion dollars.
For the bank’s Vice President in charge of Finance, Denys Denya, “this historic deal confirms the continued deep investor confidence in Afreximbank’s mission and credit track record.”
“Furthermore, the achievement of competitive pricing in both tranches is a testimony to the robust support of investors from all major financial markets globally,” he said.
With this, Denys Denya added, Afreximbank “can continue to play a primary role in the development of intra-African trade and with the rest of the world, benefiting from resources and financing investments that will positively impact trade on the continent.”
“Afreximbank, a bank with assets totaling $21.5 billion, disbursed over $6.5 billion last year to help member countries manage the adverse financial, economic and health impact caused by the Covid-19 pandemic,” the statement further pointed out.
