ADDIS ABABA – African Export Import Bank (Afreximbank) on Thursday said it has concluded a landmark 10-year, dual tranche facility of €200 million and $166 million USD for Uganda.
The transaction was structured using the Bank’s specialized finance solution, introduced to facilitate access to long term finance by African sovereigns and other eligible entities.
“This landmark transaction is timely and will have a significant impact on Uganda’s development,” said Benedict Oramah, President of Afreximbank.
Afreximbank, which worked with multiple partners, including risk mitigation providers, was the sole Mandated Lead Arranger and Agent of the facility.
The debt was distributed to a specialized institutional investor base, including Aegon Asset Management, through the Africa Repack Investment Company (ARIC), a specialized vehicle created for that purpose.
The Bank said the transaction, which is the first of its kind to be implemented by an African Multilateral Financial Institution, will “greatly assist” Uganda in achieving its trade infrastructure development and industrialisation objectives.
“By assisting the government to implement key trade-enabling infrastructure projects under its second national development plan, this facility will boost trade activities in the country and the flow of trade-related capital and services in the region,” Oramah said.
Featured Image Caption: Professor Benedict Oramah is the President and Chairman of the Board of Director of Afreximbank [Photo File]