The African Export-Import Bank (Afreximbank) announced on Monday (30) that it raised $2 billion through a three-year syndicated loan consisting of two tranches, in the largest transaction of its kind ever conducted by the institution.
According to a Reuters report, the transaction totaled $1.73 billion and €228 million, the Cairo, Egypt-based institution said, adding that the funds will be used to refinance existing facilities and cover general expenses.
The bank had initially aimed to raise $1.5 billion, but increased the amount due to strong investor demand. The cost of the loan was not disclosed.
A total of 31 financial institutions from Europe, the Middle East, Asia, and Africa participated in the transaction.
Mashreqbank PSC, MUFG Bank, and Standard Chartered Bank acted as joint global coordinators, lead managers, and bookrunners for the transaction.
Afreximbank has faced disagreements with part of the international financial community regarding its status as a “preferred creditor” and the possibility of having to absorb losses on loans to defaulting countries, such as Ghana and Zambia.
Earlier this year, the bank severed ties with Fitch Ratings, citing a “strong conviction” that the agency’s approach no longer reflected an adequate understanding of its mission and mandate.
