Afreximbank agrees to US$207m facility with NEXI to combat COVID-19

African Export-Import Bank 

African Export-Import Bank (Afreximbank) has announced the finalisation of a US$207million facility granted by Nippon Export and Investment Insurance (NEXI), the state-owned Japanese organisation 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).

The announcement represents the second collaboration between Afreximbank and NEXI. In 2020, NEXI approved a US$520million facility that 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 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 government of Japan’s strong commitment to the African continent as it emerges from the COVID-19 pandemic”.

According to Dr. Oramah, the facility will significantly bolster Afreximbank’s activities in financing vaccination acquisition and delivery on the continent.

He added that the Japanese government made a commitment to assist African countries manage and adjust to the pandemic, and the announcement provides yet another evidence of that in action.

The Chairman and CEO of NEXI, Atsuo Kuroda, said NEXI is pleased to contribute to the stable supply of vaccines on the African continent. This facility is in line with the endorsement made by Japan’s government at the TICAD7, held in 2019, to heighten support to the African countries through the use of private capital. He concluded that NEXI will continue to solve social issues that African countries are facing.

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