Afreximbank’s Korea-Focused Club Facility oversubscribed by $160m

The African Export-Import Bank (Afreximbank) has closed a Korea-focused $150 million club facility which has Shinhan Bank as coordinator and lender.

According to Afreximbank, the facility which targeted to raise $150 million; was oversubscribed to the tune of $160 million.

Mr Denys Denya, Afreximbank’s Executive Vice President Finance, Administration and Banking Services, disclosed this at the signing ceremony held in London on 14 September, 2018.

Other banks participating as lenders in the facility, which has a three-year tenor, are KEB Hana Bank, Woori Bank and NongHyup Bank.

Mr Denya said that the facility would greatly enhance the capacity of Afreximbank to achieve its core mandate in expanding intra-African trade, supporting export manufacturing, and significantly filling the trade finance gap the continent was currently experiencing, by providing it with the requisite funding capabilities at competitive pricing.

The facility had also helped the bank to diversify its sources of funding by geography, instrument and investor base, said.

He noted that despite being a debut facility in the particular market, the facility, which targeted to raise $150 million, was oversubscribed to the tune of $160 million, with four banks joining in, saying that the development was clear testimony of strong confidence in Afreximbank.

Denya commended all the institutions that participated in the facility and noted that while banks in Korea had participated in previous fundraising activities, this was the first time a facility specifically focused on Korea had been arranged for the Bank.

He said that Afreximbank saw a lot of opportunities for collaboration in Africa and invited the participating banks to work with it as it invested in the continent, adding “it is my fervent hope that this targeted facility is the first of many more similar to come”.

Accompanying Mr. Denya to the signing ceremony were Afreximbank Treasurer Chandi Mwenebungu and Douglas Tsetsetse of the Treasury Department.