For African Export-Import Bank or Afreximbank, Rand Merchant Bank (RMB) served as worldwide coordinator, bookrunner, and mandated lead arranger in procuring a USD1.2 billion (R18 billion) 3-year Syndicated Term Loan Facility.
Afreximbank is a Pan-African multilateral financial agency dedicated to financing and promoting intra- and extra-African commerce. The Term Loan Facility profits will primarily be utilized to repay existing facilities and for general corporate purposes.
“We are particularly thrilled to be part of a substantial endeavor by Afreximbank to boost its mandate across Africa with this transaction,” said Suresh Chaytoo, RMB’s Sector Head Banks and DFI’s. The international support for this capital raise is promising, and it is a testament to Afreximbank’s credit quality and strong risk management.”
RMB was the only African bank appointed as global coordinator which underlines its commitment to supporting and sustaining the Africa loan market. RMB has a long-standing relationship with Afreximbank spanning ten years.
RMB also worked with First Abu Dhabi Bank PJSC and Standard Chartered Bank as joint global coordinators, bookrunners, and mandated lead arrangers on the facility.
Launched to a limited group of relationship banks at a launch amount of US$600 million equivalent, the Facility was more than 2.3x oversubscribed allowing for Afreximbank to subsequently upsize the amount to US$1.2 billion while also scaling back the banks on the deal.
This successful transaction, launched against the backdrop of volatility that resulted from the announcement of the Omicron variant of COVID-19, is a testament to the strength of Afreximbank’s investor relationships and the high regard and confidence that the market has for the Bank’s financial strength, and its importance to the continent.
Afreximbank 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, the Bank has disbursed more than US$7.5 billion to help member countries manage the adverse impact of financial, economic, and health shocks caused by the COVID-19 pandemic.