MUFG and African Export-Import Bank (Afreximbank) have signed a $520 million facility, following Nippon Export and Investment Insurance (NEXI) agreement to support and cover the arrangement. Afreximbank will use the $500 million proceeds from the signed agreement with MUFG Bank for its Pandemic Trade Impact Mitigation Facility (PATIMFA).
NEXI’s proactive support for this facility was agreed on the basis of Afreximbank being a strategic partner, participation from Japanese investors, and the deal contributing to the UN’s Sustainable Development Goals (SDGs). MUFG was the sole Mandated Lead Arranger, Bookrunner, Agent and NEXI Coordinator on the transaction, with the documentation closing in December 2020.
The facility fully aligns with Afreximbank’s strategic priorities in the area of intra and extra African trade and investment, export manufacturing, as well as industrialization. These objectives find common ground with NEXI’s objectives of supporting sustainable African growth and development in line with TICAD objectives.
Working together with NEXI and Afreximbank, MUFG was able to access under-utilized Japanese liquidity, resulting in an extremely successful outcome of distribution to Japanese investors, many of which were new investors for Afreximbank.
This follows in the footsteps of two Samurai loans for Afreximbank in 2017 and 2019, including the largest ever Samurai Loan for an African issuer.