AfDB injects millions into Afreximbank - CNBC Africa

AfDB injects millions into Afreximbank

Financial

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AfDB injects US$280 million into Afreximbank. PHOTO: Getty Images

The package consists of a 30 million US dollars equity investment, a 150 million US dollars line of credit and 100 million US dollars towards unfunded Risk Participation Agreement.  

(READ MORE: African Development Bank to launch $3BN infrastructure fund)

“This composite facility of capital, liquidity and guarantees will help to expand Afreximbank’s risk bearing capacity and provide medium-term funds for financing various trade transactions and projects across Africa. The facility will enable Afreximbank to increase its visibility as a credible confirming bank for trade transactions originated by African issuing banks,” said the bank in a statement.

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According to the group, the package will boost intra-Africa trade, promote regional integration and contribute to the reduction of the trade finance gap in Africa.

Afreximbank, which was established in 1993 by African governments, has committed the facility towards macroeconomic resilience in at least 30 countries, providing financing to more than 100 financial institutions and corporates and to support at least 2.2 million US dollars of trade in Africa over a four year period.

(READ MORE: African leaders take on a pro-active approach to intra-Africa trade)

 

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