The Nordic Investment Bank (NIB) and the African Export-Import Bank (Afreximbank) have signed a 10-year loan programme of EUR 100 million to finance various infrastructure projects in African countries.
The EUR 100 million made available to Afreximbank under the joint facility will be used for financing eligible investments, which mainly include projects within infrastructure, such as energy, telecom, industrial parks and special economic zones, roads, railways and harbours.
Further, the loan programme will allow NIB to support export projects that include service and equipment deliveries from the Nordic and Baltic countries.
All projects considered for financing will be analysed by NIB from a sustainability perspective for their impact on productivity as well as any potential impact on climate change mitigation and the environment.
“We are pleased to announce our cooperation with Afreximbank in facilitating investments in African countries. Providing long-term capital to projects of mutual interest supports innovation and environmental protection“, says Henrik Normann, NIB President & CEO.
“The facility will enhance Afreximbank’s capacity to implement our current strategy, which prioritises industrialisation and export development, by providing medium to long-term financing for trade enabling infrastructure projects in our member states,” said Amr Kamel, Executive Vice President, Business Development and Corporate Banking, at Afreximbank. “We are confident that the facility will have a significant impact on the Africa continent in terms of industrial development.
“We are delighted that the Nordic Investment Bank has chosen to partner with us in the pursuit of Africa’s industrialisation and export development. This collaboration will contribute to fostering sustainable economic growth and development in Africa, among other development outcomes,” added Mr. Kamel.
NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor’s and Moody’s.
About the Afreximbank
The African Export-Import Bank (Afreximbank) 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 organisation, and the Charter, which governs its corporate structure and operations. Since 1994, it has approved more than $51 billion in credit facilities for African businesses, including about $8.3 billion in 2017. Afreximbank had total assets of $11.9 billion as at 31 December 2017 and is rated BBB+ (GCR), Baa1 (Moody’s), and BBB- (Fitch). The Bank is headquartered in Cairo.