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South Africa : AFREXIMBANK to receive $280mln trade finance package from AfDB

June 2, 2014

The African Export Import Bank (Afreximbank) will receive a USD 280 million Trade Finance Package from the Board of Directors of the African Development Bank (AfDB).

The Trade Finance Package includes a USD 30 million equity investment, a USD 150 line of credit and a USD 100 million unfinanced Risk Participation Agreement (RPA) respectively. The facility is compound of capital, liquidity and guarantees. It will aid to bolster Afreximbank s risk bearing capacity.

The facility will deliver medium-term funds for funding various trade transactions and projects across Africa. It will allow Afreximbank to bolster its visibility as a credible, confirmed bank for trade transactions originated by African issuing banks.

This project is well line up with AfDB s core operational priorities of regional integration and private sector development. It will help to expand intra-Africa trade and promote regional integration. It will add the reduction of the trade finance gap in Africa.

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Source: TendersInfo (India)

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