The African Export-Import Bank (Afreximbank) has successfully closed a record 632.9 million dollars and 499.6 million Euro dual-tenor dual-currency syndicated term loan facility.

Afreximbank announced this in a statement released in Lagos.

It said that the general syndication stage of the 632.9 million dollar and 499. 6 million Euro facility, which the bank raised in the Eurocurrency loan market, was originally signed on May 12.

General syndication lenders signed into the agreement on 30 May, making the facility the largest ever such facility for the bank.

According to the bank, the fact that the facility attracted a wide base of lenders from around the globe and particularly from Asia and the Middle East, is evidence of the confidence which lenders have in Afreximbank.

“With 70 per cent of the commitments coming from Asia and the Middle East, this facility greatly enhances our drive to diversify our liability book by geography,” said Denys Denya, Afreximbank’s Executive Vice President in charge of Finance, Administration and Banking Services.

Denya said that Afreximbank would use the funds to repay existing debt and would also apply it to funding trade finance and meeting general corporate purposes.

The facility is structured as a dual-currency (Euro and US dollar) and dual-tenor (two-year and three-year) syndicated facility with about 80 per cent of the total amount falling into the three-year tranche, helping the bank to lengthen its liability profile in the Eurocurrency loan funding space.

The facility attracted aggregate commitments amounting to the equivalent of 1.36 billion dollars which, following a scale-back, resulted in a final facility size equivalent to 1.16 billion dollars with 35 banks joining.

Standard Chartered Bank served as coordinator, bookrunner and agent for the facility and was supported by 13 initially mandated lead arrangers and book runners.

Source: Voice of Nigeria