Afreximbank, CDC Group sign $100m risk agreement to boost trade facilitation
As part of its continued effort in enhancing intra-African trade, the Export-Import Bank (Afreximbank), and CDC Group Plc have signed a $100 million master risk participation agreement to support Afreximbank’s Trade Facilitation Programme.
Under the terms of the risk participation arrangement, CDC will provide unfunded risk participation to Afreximbank as the Bank provides trade finance products that include trade confirmation services; trade confirmation guarantee; and irrevocable reimbursement undertakings.
Speaking during the signing ceremony at the weekend in Casablanca, Morocco, Afreximbank’s Executive Vice President for Business Development and Corporate Banking, Amr Kamel, said that the agreement would support the bank’s trade confirmation services under which Afreximbank provides confirmation lines to African financial institutions to support their trade businesses and increase capacity to undertake trade finance transactions.
According to Kamel, the facility will also support the Afreximbank Trade Confirmation Guarantee Programme which offers full guarantee to international banks on behalf of African financial institutions with the aim of resolving the issue of lack of credit limit by international/confirming banks for the African counterparts or situations of limited credit limit due to capacity constraints, among others.
Earlier speaking, the Director, Supply Chain Finance and Trade Finance of CDC, Admir Imami, who signed on behalf of his company, said that CDC was excited at the opportunity to work with Afreximbank and looked forward to many more joint projects and deals in the future.
