PANAPRESS
Panafrican News Agency
Benin: AfDB approves US$280 million to help Afreximbank finance trade
Cotonou, Benin (PANA) – The African Development Bank (AfDB) has approved a trade financing programme, worth US$280 million, for the African Import-export bank (Afreximbank), says a press release issued by the financial institution.
The loan is aimed at improving the capacity of Afreximbank to bear risks and provide mid-term funds for transactions and trade financing projects in Africa, according to the press release, obtained in Sunday by PANA.
The loan, approved by the AfDB board of director, includes a credit line of US$150 million, US$100 million for non-capitalized participation risk and another project worth US$30 million.
The financing programme will enable Afreximbank to improve its capital as bank, and confirm trade transaction issued by Africa's issuing banks.
It would also boost intra-African trade and promote regional integration while contributing to reducing the trade gap in Africa.
It will also contribute to the macro-economic resilience in at least 30 countries and will provide financing for more than 100 financial institutions and companies, while backing trade for at least US$2.2 billion in Africa over a four-year period, contributing therefore to strengthening the financial sector and promoting the private sector.
AfDB, the main development financing institution in Africa, has offices in 34 African countries, with a foreign office in Japan.
It contributes to economic development and social progress in its 53 member States.
Set up in 1993 by African governments, African private and institutional investors and non-African investors to finance and promote intra- and extra-African trade, Afreximbank has its headquarters in the Egyptian capital, Cairo.
Since 1994, Afreximbank has approved about US$30 billion as loan facilities for African companies, with US$3.5 million granted in 2013.
-0- PANA IT/BEH/MSA/VAO 1June2014
The loan is aimed at improving the capacity of Afreximbank to bear risks and provide mid-term funds for transactions and trade financing projects in Africa, according to the press release, obtained in Sunday by PANA.
The loan, approved by the AfDB board of director, includes a credit line of US$150 million, US$100 million for non-capitalized participation risk and another project worth US$30 million.
The financing programme will enable Afreximbank to improve its capital as bank, and confirm trade transaction issued by Africa's issuing banks.
It would also boost intra-African trade and promote regional integration while contributing to reducing the trade gap in Africa.
It will also contribute to the macro-economic resilience in at least 30 countries and will provide financing for more than 100 financial institutions and companies, while backing trade for at least US$2.2 billion in Africa over a four-year period, contributing therefore to strengthening the financial sector and promoting the private sector.
AfDB, the main development financing institution in Africa, has offices in 34 African countries, with a foreign office in Japan.
It contributes to economic development and social progress in its 53 member States.
Set up in 1993 by African governments, African private and institutional investors and non-African investors to finance and promote intra- and extra-African trade, Afreximbank has its headquarters in the Egyptian capital, Cairo.
Since 1994, Afreximbank has approved about US$30 billion as loan facilities for African companies, with US$3.5 million granted in 2013.
-0- PANA IT/BEH/MSA/VAO 1June2014
