• Friday, February 23, 2024
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BusinessDay

Shareholders to inject $500 million into Afreximbank

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The African Export-Import Bank (Afreximbank) is to receive a $500-million capitalization following a decision by the Bank’s shareholders to authorise a share offering to the Bank’s existing shareholders.

Rising from their Fourth Extraordinary General Meeting in Cairo, the Shareholders signed off on the $500-million share offering which would be in the form of paid up funds that would increase the Bank’s capitalization to enable it “take advantage of the tremendous financing opportunities as a result of the rapidly rising demand for its services and the quickening of Africa’s economic growth while maintaining sound credit rating”.

The shareholders were acting on the recommendation of the Board of Directors.

The African Export-Import Bank (Afreximbank), headquartered in Cairo, Egypt, is the foremost pan-African multilateral financial institution devoted to financing and promoting intra- and extra-African trade.

The Bank was established in October 1993 by African governments, African private and institutional investors, and non-African investors.

Its two basic constitutive documents are the Establishment Agreement, which gives it the status of an international organization, and the Charter, which governs its corporate structure and operations. 

Since 1994, Afreximbank has approved almost $30 billion in credit facilities for African businesses, including about $3.5 billion in 2013.