Afreximbank signs $1.2bn financing deals with 4 African companies

African Export-Import Bank (Afreximbank) on Wednesday signed financing deals worth $1.2 billion with four African companies and a Memorandum of Understanding (MoU) with the African Union Development Agency (AUDA-NEPAD).

The breakdown of the deal shows that Oakmill Group International signed a $210 million project finance facility, $100 million trade finance facility was in favour of Harvest Group of Companies.

Also, a $110.4 million syndicated term loan facility was signed in favour of Zimbabwe Electricity Transmission and Distribution Company (ZETDC), and $750 million for Eroton Exploration and Production Company Limited.

Read also: Afreximbank commits $40bn to support intra-African trade over 5years

It was explained at the signing ceremony in Durban, South Africa that the bank issued the facility to Eroton to finance the acquisition of 100 percent of the shares into special purpose vehicles, oil mining lease, under secured, senior secured reserve-based lending facility, and also to finance the prepayment of all of Eroton’s outstanding exposures with its existing lender. This has taken two years to come to fruition.

Speaking immediately after signing the deal, Onajite Okoloko, chairman of Eroton, said, “it is really a pleasure being here especially for this transaction. We have worked with Afreximbank for almost two years. This is a big milestone for us. It will help Eroton continue with its expansion strategy to be able to monetise oil and gas assets and reserves that exist in Nigeria.

So this is a big day for us. And we are really excited that this transaction is finally coming to a close and so I want to thank you all for being to witness this and celebrate with us as we sign this particular deal,” he said.

Rene Awambeng, global head of client relations, Afreximbank, said “today on the 16th of November 2021 here on the main stage of IATF 2021 Afreximbank is signing a project finance facility and trade finance facilities for Oakmill Group of companies.

Afreximbank is very active as the lead of all participating banks in the past decade in financing infrastructure projects across Africa. And in this capacity, Afreximbank will be issuing a non-binding letter of interest to Oakmill Group International and Harvesting Group of companies to provide project financing with respect to the proposed construction and commissioning of 300 million litres refined petroleum products storage facilities in Zambia.

Present at the MoU signing between Afreximbank and AUDA-NEPAD was the chief of staff Jenifer Chiriga, representing Ibrahim Assane Mayaki, CEO NEPAD, and representing Afreximbank was Kanayo Awani, managing director, Intra-African trade initiative.

The objective of the MoU was to establish a non-binding and non-exclusive framework of collaboration to support African countries, the regional entities and institutions and the rest of the regional economic communities. It would help them implement the AU agenda 2063, which includes the aspiration and integrated of, continent holistically and united based on the ideas of Pan-Africanism, and the vision of African renaissance of the agenda 2063.

Other agenda include the exchange of technical knowledge, project fee back report and upscaling the capacity building exercises, use of payment and settlement system such as the Pan-African Payment and Settlement System (PAPSS), and other regional payment settlement system to facilitate the free movement of goods and services.