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Tag: AFREXIMBANK

  • Afreximbank’s total assets rise by 20% to $33.5b

    Afreximbank’s total assets rise by 20% to $33.5b

    African Export-Import Bank (Afreximbank) rode on the back of business expansion and improved profitability to increase its balance sheet by 20 per cent to $33.5 billion in 2023.

    Key extracts of the audited report and accounts of Afreximbank for the year ended December 31, 2023 released at the weekend showed that gross income rose by 74.7 per cent from $1.50 billion in 2022 to $2.62 billion in 2023. Operating income increased from $1.03 billion to $1.60 billion.

    Net interest income had risen to $1.4 billion in 2023 compared with $910.3 million in 2022. The 58.67 per cent increase was driven by the growth in interest income, which in turn was driven primarily by the growth in the bank’s portfolio of loans and advances. Net interest margin grew to 4.96 per cent compared with the prior year’s level of 3.83 per cent.

    The group’s total assets grew by 20.12 per cent to $33.5 billion in 2023 as against $27.9 billion in 2022, largely on account of increases in net loans and advances to customers and cash and cash equivalents. Group shareholders’ funds rose by 17.55 per cent to $6.1 billion in 2023 as against $5.2 billion in 2022. The growth in shareholders’ funds was largely due to $546.8 million retained income and the $349.8 million fresh equity raised during the year as shareholders supported the GCI II programme, which aims to raise $2.6 billion paid-in-capital by 2026.

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    Senior Executive Vice President, African Export-Import Bank (Afreximbank), Mr. Denys Denya said the group’s results in 2023 demonstrate a strong and resilient performance, surpassing prior year results and well ahead of expectations.

    He said the bank remained steadfast in implementing its 6th strategic plan and delivering value to stakeholders, and this resulted in the group ending the year, once again, achieving a solid performance and attaining an exceptional financial position.

    The group stated that its performance had been enhanced by its ability to successfully execute its four strategic pillars focused on promoting intra-African trade, facilitating industrialisation and export development, strengthening trade finance leadership and improving financial performance and soundness.

  • Afreximbank partners Sterling Bank on chain finance in Nigeria

    Afreximbank partners Sterling Bank on chain finance in Nigeria

    African Export-Import Bank (Afreximbank) has reached a partnership agreement with Sterling Bank to introduce the innovative supply chain finance product ‘Payables Finance’, in Nigeria.

    This product, branded as ‘Afreximbank Tradelink,’ is one of Afreximbank’s digital offerings under the umbrella of the Africa Trade Gateway (ATG).

    ATG provides African corporates and commercial banks with relevant digital tools to access market information, connect with buyers and sellers across the continent for efficient marketing and procurement, facilitate Know Your Customer (KYC) processes, and promote trade payments between African countries in local currencies.

    Payables Finance enables suppliers to access financing from the banking system by obtaining early payment for invoices which have been approved for payment by their corporate buyers.

    The product enables buyers continue to receive trade credit from the suppliers, and the suppliers finance their working capital through the early payment received, enabling them to grow their business.

    The financing cost is linked to the credit rating of the corporate buyers, thereby making this product particularly valuable for SME suppliers that may face challenges in accessing bank finance at competitive pricing.

    Payables Finance, according to Afreximbank, is the fastest growing trade finance product globally and there is an enormous opportunity for African businesses to benefit from it. The partnership with Sterling Bank is a unique and innovative arrangement which leverages the complementary strengths of both institutions to provide a comprehensive market-led solution to Nigerian corporates and their suppliers.

    Under this arrangement, Afreximbank will provide financing to corporates and banks in US Dollars and Euros, while Sterling Bank will manage financing in Naira. Suppliers of Nigerian corporates can thus benefit from financing in both local and foreign currency as per their requirements.

    The Executive Vice President, Afreximbank Global Trade Bank, Haytham ElMaayergi, welcomed the launch as another milestone in realising the bank’s vision of transforming Africa’s trade.

    He said: “Afreximbank identified supply chain finance as a solution for improving access to trade finance in Africa and embarked on a journey to increase penetration through financial intervention and capacity building.

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    “The bank’s Factoring Working Group has done extremely well to provide lines of credit to support factoring and has actively promoted factoring across the continent in collaboration with other institutions.”

    He said  the introduction of Payables Finance is the next step on the Bank’s roadmap for supply chain finance across Africa, adding: “African businesses now have the opportunity to harness the potential of this product, which has been widely adopted globally, at an accelerated pace by learning from the experiences of other regions and using the latest technologies which have been developed.”

    Gwen Mwaba, Director & Global Head, Trade Finance, Afreximbank, said: “The launch in Nigeria is a first step in Afreximbank’s plans to introduce Payables Finance across Africa in partnership with leading African financial institutions.

    The product, which will deploy world class technology and a collaborative delivery model and will contribute towards achievement of the bank’s strategic objective of reducing the trade finance gap in Africa, particularly for the Small and Medium Enterprises (SMEs) segment.”

    Ecosystem Banking Head, Sterling Bank, Chukwuka Onuaguluchi, said: “Sterling Bank is committed to meeting the trade finance needs of Nigerian corporates and their suppliers and we are proud to introduce this much-needed product in partnership with Afreximbank for the benefit of Nigerian businesses.”

  • Afreximbank, CDP sign 200m euro deal

    Afreximbank, CDP sign 200m euro deal

    Africa Export-Import Bank (Afreximbank) and Cassa Depositie Prestiti S.p.A (CDP), Italy, the official Italian financial institution for international development cooperation, have signed a new financing facility worth 100 million euro to support the bank’s interventions in climate-smart agriculture in Africa.

    The financing adds to an initial commitment from CDP of 100 million euros, lifting the total financing from CDP to 200 million euros. The two financial institutions also entered into a Memorandum of Understanding (MoU) to foster synergies between Italian and African companies.

    The partnership was announced during the inauguration of CDP’s new office in Cairo, the first operational headquarter of the Italian institution in Africa.

    Executive Vice President of Afreximbank, Haytham ElMaayergi,  and Chief Executive Officer ,CDP, Dario Scannapieco,  signed the agreement.

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    The new financing from CDP will be used to provide support, either directly to eligible African enterprises, or indirectly through local financial intermediaries. Some of the projects that will be financed will include those related to local production and import of essential soft commodities such as cereals and fertilisers.

     ElMaayergi said that the facility would support Afreximbank’s drive to increase food production in its member countries and would also help Africa to achieve food security through private sector intervention. Additionally, it will support the development of alternative food channels, including increasing investments in climate-smart agriculture, to increase food yield and provide resilience to businesses in the food and agriculture space.

    He added that “the MOU will promote collaboration between Italian and African enterprises and will bring Africa and Italy closer with the aim of promoting intra and extra-African trade. The collaboration, he said, includes co-financing of eligible transactions with sovereigns, corporates and financial institutions in Afreximbank’s member countries, and the organisation, participation and promotion of matchmaking events with African stakeholders and local business communities in Italy, or any of Afreximbank’s member countries.

     Scannapieco said: “Food security and the resilience of agricultural supply chains are key issues for the development of the African continent, as also highlighted by the initiatives undertaken by the Italian government with the Mattei Plan. Through collaboration with Afreximbank, CDP will be able to guarantee resources to local SMEs operating in these sectors, while at the same time favouring the creation of opportunities for Italian companies. This commitment will further be reinforced through the opening of our new office in Cairo, which confirms the centrality of Africa in CDP strategy.”   

  • Afreximbank extends GAIN’s grant to train 300 entrepreneurs

    Afreximbank extends GAIN’s grant to train 300 entrepreneurs

    African Export-Import Bank (Afreximbank) has extended the grant of the Grand Africa Initiative (GAIN) to train 300 young African entrepreneurs.

    The training programme, which would focus on entrepreneurship and intra-African trade, would start this month.

    In a statement in Abuja, the Director, AU/AfCFTA Relations and Trade Policy, Afreximbank, Yusuf Daya emphasised the crucial importance of capacitating young African entrepreneurs to take full advantage of the opportunities availed by the AfCFTA.

    Daya said: “Our renewed support to the GAIN Masterclass underscores the Bank’s efforts to develop skills of African youth and build African entrepreneurial capacity under the Afreximbank Academy (AFRACAD). We look forward to an even more successful program in 2024 following the highly impactful masterclass in 2022 which helped build the capacity of 200 entrepreneurs from across the continent.”

    Also, the Partnership Lead at GAIN, Jerry Momoh said: “This marks the fifth edition of the GAIN entrepreneurship masterclass series designed to empower African youths. We have two series so far focused on training women and three series now open to both males and females. We are happy to have this partnership with Afreximbank again this year to provide invaluable entrepreneurial support to young entrepreneurs.

    “In 2022, we trained participants from 29 countries across Africa. Beyond the training, participants will gain in-depth knowledge, build connections, and access mentorship from experienced global mentors, all of which will have a successful impact on their business growth.”

    According to him, the GAIN-Afreximbank masterclass on entrepreneurship and intra-African trade has been meticulously designed to equip young African entrepreneurs from various regions of the African continent with essential skills to foster the growth and expansion of their enterprises beyond their national borders.

    “Over a comprehensive six-week program, participants will gain valuable insights into how to build and expand their businesses leveraging the intra-African Market. Participants will receive technical guidance, practical training, and business advisory from a faculty of international experts.

    “Moreover, this program aims to enhance inclusivity in the implementation of the African Continental Free Trade Area (AfCFTA) by offering interventions that specifically support young Africans, women, and small and medium-sized enterprises.

    “Interested individuals are encouraged to submit their applications through the official program website at www.grandafrica.org,” the statement added.

  • Afreximbank tops the loan market rankings in Bloomberg’s Capital Markets

    Afreximbank tops the loan market rankings in Bloomberg’s Capital Markets

    African Export-Import Bank (Afreximbank) has been ranked number one in all three categories in the Bloomberg Capital Markets League Tables Report for African Capital Markets.

    Afreximbank is ranked as number one Mandated Lead Arranger, Bookrunner, and Administrative Agent for Sub-Saharan Africa Borrower Loans. These rankings recognize the Bank’s leadership role in facilitating capital from within and outside of the continent, from a diverse range of investors and stakeholders to fulfill the financing needs of African member states and organizations.

    Topping these prestigious rankings in all three categories simultaneously for the first time in the Bank’s 30-year history is a testament to the Bank’s remarkable growth, its systemic relevance on the continent, and its leading market position in the African loan markets. Despite the challenges faced by the African syndicated loan market in 2023, with volumes remaining relatively subdued at US$32 billion and a total of 82 loans only closing during the year, the rankings reflect Afreximbank’s unwavering commitment to its mandate.

    Notably, the Bank has almost doubled its market share in both the Mandated Lead Arranger (MLA) and Bookrunner categories, rising from 8% and 9% in 2022 to an impressive 19% and 14% in 2023, respectively. In the Loans Agency category, Afreximbank retained a significant 15% market share, while achieving a remarkable milestone of securing the position of the number one facility agent for the first time ever. The Bank’s specialized agency team is committed to growing the provision of these loans’ agency and security trustee services and is actively managing some of the largest loans on the continent.

    These statistics reflect Afreximbank’s pivotal role in proactively stepping in to close the funding gap across various industry sectors and recognise the Bank’s continued leadership in mobilising and leveraging African capital from within and international capital from outside the continent from a diverse range of investors and stakeholders to meet the financing needs of African borrowers.

    Afreximbank’s increased market share is particularly noteworthy in the challenging sectors of oil and gas and sovereign finance. Landmark financings in 2023 facilitated by the Bank include the US$1.3 billion Project Gleam facility for Angolan Ministry of Finance , the most significant “Green Loan” in Africa to date; partial prefunding of the US$2.7 billion multi-sourced financing for Ministry of Finance & Planning Tanzania’s backed development of Lots 3-4 of the Standard Gauge Railway; the US$ 1.3 billion annual facility for Angolan national oil company Sonangol; and a US$ 2,25 billion initial commitment of the US$ 3.3 billion crude oil prepayment facility for the Nigerian National Petroleum Company (NNPC).

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    Afreximbank President and Chairman of the Board of Directors, Prof. Benedict Oramah, commented: “These outstanding rankings in the Bloomberg League tables underscore Afreximbank’s commitment to driving economic growth, facilitating capital flows within the African continent while reflecting our resilience and ability to navigate challenging market conditions.  The success of our rankings is a testament to the hard work and commitment of my colleagues and reinforces our position as a trusted financial partner for African organizations. We look forward to servicing their financing requirements for many years to come.”

    The Bloomberg Capital Markets tables showcase the top arrangers, bookrunners and advisors across a broad array of deal types in the financial sector including loans, bonds, equity and M&A transactions

  • Afreximbank tops loan market rating for Africa

    Afreximbank tops loan market rating for Africa

    African Export-Import Bank (Afreximbank) has been ranked number one in all three categories in the Bloomberg Capital Markets League Tables Report for African Capital Markets.

    Afreximbank is ranked as number one Mandated Lead Arranger, Bookrunner, and Administrative Agent for Sub-Saharan Africa Borrower Loans.

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    Afreximbank President and Chairman of the Board of Directors, Prof. Benedict Oramah, described the outstanding rankings as part of the bank’s commitment to driving economic growth, facilitating capital flows within the African continent.

    He said it reflects its resilience and ability to navigate challenging market conditions. 

  • Afreximbank, Nigeria discuss bank’s financing supports

    Afreximbank, Nigeria discuss bank’s financing supports

    President, African Export-Import Bank (Afreximbank), Prof. Benedict Oramah, met with President Bola Tinubu at the weekend on the bank’s initiatives and financing support to Nigeria.

    The meeting focused on the progress and potential impact of the 500-bed African Medical Centre of Excellence (AMCE) Abuja, as well as its implications for healthcare across Africa.

    Oramah and Tinubu affirmed the importance of the AMCE Abuja project as a flagship development with transformative implications for African healthcare.

    The essence is to significantly reduce the need for out-bound, extra-African medical tourism by providing world-class medical services on the continent and, by extension, stemming the tide of healthcare talent migration from Africa.

    The facility will focus on three core non-communicable diseases (Oncology, hematology and cardiology) and general care capabilities, and partly reflects co-operation with global partners.

    The partners, who include KCH, the University of Wisconsin Teaching Hospital, United States, and the Christies Hospital, Manchester, are serving to demonstrate the direction in which African healthcare  should go to better serve the continent.

    The AMCE Abuja, which is nearing completion, is the first of five such centres planned across Africa.

    The facility will constitute a leading centre for research and development in medicine and clinical services, as well as offering residency, training and observership placement programmes to physicians and medical students from Nigeria and other parts of Africa.

    To complement the AMCE Abuja and develop human resources in healthcare, Afreximbank has entered an arrangement with KCL to establish a Medical & Nursing School in Abuja to support the production of quality medical personnel in Africa.

    The platform will also be used to collaborate with other colleges of medicine in Nigeria and across Africa. 

    Oramah’s discussion with President Tinubu also touched upon the landmark Memorandum of Understanding (MoU) signed between Afreximbank and the Federal Ministry of Health to support the development of Nigeria’s healthcare sector.

    This is under the Presidential Initiative for Unlocking Healthcare Value Chains (PVAC) through a $1 billion Healthcare Value Chain Programme.

    President Tinubu said: “We welcome this significant step towards investing in Nigeria’s healthcare sector. This facility is a great commitment to humanity. We are open and ready to assist this project in every way possible.

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    “Africa is in need, and Nigeria is committed to the need of its people. Putting people’s welfare first is putting healthcare first. The training and development of our people are our priorities, and we thank Afreximbank and their partners for their ongoing support”

    The Afreximbank President and Chairman of the Board of Directors, Prof. Oramah, commented;

    “I am grateful to President Tinubu for his time, and for an animated and fascinating discussion on our continent’s central challenges: the provision and delivery of quality, effective healthcare.

    “For too long, our continent has watched as its best and brightest medical minds have migrated to Europe and America – but we are now poised to develop a domestic healthcare sector which can retain talent, eventually rivaling and even surpassing systems in other regions.”

    Afreximbank is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade.

    For 30 years, the Bank has been deploying innovative structures to deliver financing solutions that support the transformation of the structure of Africa’s trade, accelerating industrialization and intra-regional trade, thereby boosting economic expansion in Africa.

  • Afreximbank coordinates Euro 500m social bond

    Afreximbank coordinates Euro 500m social bond

    The African Export-Import Bank (Afreximbank), has announced that it has successfully acted as Joint Global Coordinator on the inaugural Euro 500 million RegS-only senior unsecured social bond issuance by the Arab Bank for Economic Development in Africa (BADEA) under its newly-established Euro Medium Term Note (EMTN) program listed on the London Stock Exchange.

    BADEA is a development finance institution established in 1974 by 18 member countries of the League of Arab States (LAS) to provide targeted developmental financing to 44 non-Arab Sub-Saharan African countries, with total assets of USD 5.7bn as of June 2023.

    BADEA, rated Aa2/AA/AAA (positive/positive/stable) by Moody’s/S&P/JCR, issued a debut EUR 500mn 3-year social bond with use of proceeds to fund eligible projects under the issuer’s newly established Sustainable Finance Framework with focus on essential services (healthcare/education/MSME financing), food security, employment generation and affordable housing sectors.

    BADEA’s Sustainable Finance Framework was independently verified by Second Party Opinion (SPO) from ISS.

    The bond issuance was 3.0x oversubscribed off peak orderbook EUR 1.5B and supported by over 50 high-quality institutional investors including central banks, DFIs, fund managers and commercial banks from Africa, Middle East, Europe, UK and US offshore accounts. The 3-year bond was priced at 100bps over EUR midswap rate to yield 3.806% (annual fixed coupon 3.750%) well inside initial price thoughts of 120-125bp respectively.

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    Professor Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, commented on the transaction:
    “We are delighted to support our sister organization BADEA’s market foray as the first thematic bond as well as first Investment Grade-rated DFI bond to be led by Afreximbank reaffirming our drive to deepen capital market access for African issuers under all market conditions.”

    Dr. Sidi Ould-Tah, President of BADEA, also remarked on the transaction: “We are pleased with Afreximbank’s strategic contribution in placing our maiden bond with high-quality anchor investors in a manner that enables BADEA to channel greater Arab African development funding towards sectors of highest social multiplier impact.”

    Afreximbank, through its Advisory and Capital Markets (ACMA) department, acted as Joint Global Coordinator on BADEA’s bond issuance alongside international banking partners as Joint Global Coordinators and Joint Lead Managers.

  • Afreximbank President wins award

    Afreximbank President wins award

    President and Chairman of the Board of African Export and Import Bank (Afreximbank), Professor Benedict Oramah has clinched a Financial Leadership Award  organised by  the  African Prosperity Network (APN). He was honour at the  African Prosperity Dialogue Financial gala dinner held recently.

    The Leadership Awards is an initiative of the APN that seeks to recognise and celebrate Africans making transformational impacts in the financial services industry across the continent.

    While receiving the award, Prof. Oramah said: “I primarily thank our host, H.E. President Nana Akufo-Addo of the Republic of Ghana for his unrelenting support to the Bank since assuming office.

    We are witnessing very perilous times because of various crises and as ever, Africa must find a way to rise above these storms. I take this award not as a symbol of exceptionalism, but rather as a call to duty, a call to do more for our beloved continent. The struggle for freedom and prosperity that our forebears commenced over seven decades ago will only be complete when Africa has gained its economic and financial independence.”

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    He added: “As today is a day of celebrating the wins, on behalf of the entire Afreximbank Board, Management, staff, partners and indeed clients, I receive this recognition and sincerely thank the conveners of the APN for the honor as well as for the work they are doing in shining a positive light on Africa.”

    Specifically, the Financial Leadership category, celebrates individuals in senior positions who have demonstrated exceptional leadership and expertise,  exude sound financial management, prudent risk management and innovative financial thinking.

  • Afreximbank disburses $2.25b crude oil prepayment to Nigeria

    Afreximbank disburses $2.25b crude oil prepayment to Nigeria

    African Export-Import Bank said it has successfully arranged a syndicated $3.3 billion crude oil prepayment facility sponsored by the Nigerian National Petroleum Company Limited and that an initial disbursement of $2.25 billion has been made.

    A second tranche of $1.05 billion is expected to be disbursed subsequently. Afreximbank said: “This landmark financing is Nigeria’s largest crude oil prepayment facility and one of the largest syndicated loans raised in Africa in 2023. Investors were keen to consider ticket sizes of $250 million and $500 million amidst current headwinds and year-end pressures in the loan markets. The 5-year facility carries a margin of 6.0% per annum above the 3-month secured overnight financing rate (SOFR). The transaction structure has an embedded price balance mechanism where 90% of all excess cash from the sale of the committed barrels (after debt service) will be released while the balance of 10% will be used to prepay the facility, effectively shortening the final maturity of the facility and freeing cash flow from future pledged cargoes for use by Nigeria.

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    “The initial participating lenders are Afreximbank, Africa’s multilateral trade finance institution, Gunvor International BV, a Geneva-based multinational energy and commodities trading company and Sahara Energy Resources Limited.”AFRICAN Export-Import Bank said it has successfully arranged a syndicated $3.3 billion crude oil prepayment facility sponsored by the Nigerian National Petroleum Company Limited and that an initial disbursement of $2.25 billion has been made.

    A second tranche of $1.05 billion is expected to be disbursed subsequently. Afreximbank said: “This landmark financing is Nigeria’s largest crude oil prepayment facility and one of the largest syndicated loans raised in Africa in 2023. Investors were keen to consider ticket sizes of $250 million and $500 million amidst current headwinds and year-end pressures in the loan markets. The 5-year facility carries a margin of 6.0% per annum above the 3-month secured overnight financing rate (SOFR). The transaction structure has an embedded price balance mechanism where 90% of all excess cash from the sale of the committed barrels (after debt service) will be released while the balance of 10% will be used to prepay the facility, effectively shortening the final maturity of the facility and freeing cash flow from future pledged cargoes for use by Nigeria.

    “The initial participating lenders are Afreximbank, Africa’s multilateral trade finance institution, Gunvor International BV, a Geneva-based multinational energy and commodities trading company and Sahara Energy Resources Limited.”