By Joseph INOKOTONG, Abuja
The African Export-Import Bank (Afreximbank) and CDC Group Plc. Saturday in Casablanca, Morocco, 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, Amr Kamel, Afreximbank’s Executive Vice President for Business Development and Corporate Banking, said that agreement will support Afreximbank’s trade confirmation services under which the Bank provides confirmation lines to African financial institutions to support their trade businesses and increase capacity to undertake trade finance transactions.
A statement issued by Obi Emekekwue of Afreximbank Communications department said it 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.
Also speaking, Admir Imami, Director, Supply Chain Finance and Trade Finance of CDC, 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.
CDC Group Plc. is a United Kingdom development finance institution.
The African Export-Import Bank (Afreximbank) is the foremost pan-African multilateral financial institution devoted to financing and promoting intra- and extra-African trade.
The Bank was established in October 1993 by African governments, African private and institutional investors, and non-African investors.
Its two basic constitutive documents are the Establishment Agreement, which gives it the status of an international organization, and the Charter, which governs its corporate structure and operations. Since 1994, it has approved about $60 billion in credit facilities for African businesses, including about $8.5 billion in 2017.
Afreximbank had total assets of $11.9 billion as at 31 December 2017 and is rated BBB+ (GCR), Baa1 (Moody’s), and BBB- (Fitch). The Bank is headquartered in Cairo.