Afreximbank plans to raise $3bn in 2016 to finance activities

The African Export-Import Bank (Afreximbank) plans to raise around $3 billion this year via Eurobonds, syndications, as well as bi-lateral and institutional lending in order to finance its activities, Reuters reports. 

“We are going to issue a Eurobond very soon. We are going to go to the syndicated loan market. We are also prepared to issue some local currency bonds, so we can fund some local currency activities,” the bank’s president Benedict Okey Oramah said in an interview.

According to him, the multilateral organisation will issue a Eurobond mid-year subject to market conditions while the local currency bonds would be issued during the last quarter of the year.

Afreximbank would also seek to increase deposits from member countries’ central banks to $10 billion from the current $3 billion.

Last month, the financial institution also got $50 million line of credit from the Arab Bank for Economic Development in Africa (BADEA) to finance trade operations between Arab and African countries. Dr. Oramah said that Afreximbank saw opportunity to work with BADEA to expand its $500 million Egypt-Africa Trade Promotion Programme and to replicate it in other Arab countries.