Cairo, 17 March 2022 – African Export-Import Bank (Afreximbank) today in Cairo announced the finalization of a US$207 million facility granted by Nippon Export and Investment Insurance (NEXI), the state-owned Japanese organization focused on trade and investment. The facility will support the Bank’s broader response measures to the Covid-19 pandemic, especially its financing efforts for the acquisition of COVID-19 vaccines for Africa through the African Vaccine Acquisition Trust (AVAT).
Today’s announcement represents the second collaboration between Afreximbank and NEXI: in 2020, NEXI approved a US$520 million facility which was also designed to support the Bank’s response to the Covid-19 pandemic by enabling it to finance the import of Covid-19 containment materials as well as related essentials. The range of facilities supports the implementation of the Japanese Government’s decision at the TICAD7, to support African countries by facilitating the deployment of private capital.
Mitsubishi UFJ Financial Group (MUFG) acted on the deal as Mandated Lead Arranger, Bookrunner, Agent, and Global Co-ordinator, and was involved in the first of NEXI’s facilities agreed with Afreximbank in 2020.
Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, commented: “This facility – the second in a series – demonstrates the strong commitment of the Government of Japan to the African continent as it emerges from the Covid-19 pandemic. It will significantly bolster Afreximbank’s activities in financing vaccination acquisition and delivery on the continent. The Japanese government made a commitment to assist African countries to manage, and adjust to, the pandemic, and today’s announcement provides yet another evidence of this in action.”
Atsuo Kuroda, Chairman and CEO of NEXI, commented: “NEXI is pleased to contribute to the stable supply of vaccines in the African continent. This facility is in line with the endorsement made by the Japanese government at the TICAD7 held in 2019, to heighten support to the African countries through the use of private capital. NEXI will continue to solve social issues that African countries are facing.’’
African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade. Afreximbank deploys 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. The Bank has a rich history of intervening in support of African countries in times of crisis. Through the Pandemic Trade Impact Mitigation Facility (PATIMFA) launched in April 2020, Afreximbank has disbursed more than US$7 billion to help member countries manage the adverse impact of the financial, economic, and health shocks caused by the COVID-19 pandemic. A stalwart supporter of the African Continental Free Trade Agreement (AfCFTA), Afreximbank has launched a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the AfCFTA. Afreximbank is working with the AU and the AfCFTA Secretariat to develop an Adjustment Facility to support countries in effectively participating in the AfCFTA. At the end of 2020, the Bank’s total assets and guarantees stood at US$21.5 billion, and its shareholder funds amounted to US$3.4 billion. Afreximbank disbursed more than US$42 billion between 2016 and 2020. The Bank has ratings assigned by GCR (international scale) (A-), Moody’s (Baa1), Japan Credit Rating Agency (JCR) (A-) and Fitch (BBB-). The Bank is headquartered in Cairo, Egypt.
Nippon Export and Investment Insurance (NEXI) is the official export credit agency of Japan. NEXI conducts insurance business to support Japanese enterprises by covering risks associated with overseas transactions including investments and loans that cannot be covered by private-sector insurance.