Afreximbank agrees US$207 facility with NEXI to combat Covid-19

By Etuka Sunday 

African Export-Import Bank (Afreximbank) today in Cairo announced the finalization of a US$207 million facility granted by Nippon Export and Investment Insurance (NEXI), the state-owned Japanese organization focused on trade and investment.

The facility will support the Bank’s broader response measures to the Covid-19 pandemic, especially its financing efforts for the acquisition of COVID-19 vaccines for Africa through the African Vaccine Acquisition Trust (AVAT).

Today’s announcement represents the second collaboration between Afreximbank and NEXI: in 2020, NEXI approved a US$520 million facility which was also designed to support the Bank’s response to the Covid-19 pandemic by enabling it to finance the import of Covid-19 containment materials as well as related essentials. The range of facilities supports the implementation of the Japanese Government’s decision at the TICAD7, to support African countries by facilitating the deployment of private capital.

Mitsubishi UFJ Financial Group (MUFG) acted on the deal as Mandated Lead Arranger, Bookrunner, Agent, and Global Co-ordinator, and was involved in the first of NEXI’s facilities agreed with Afreximbank in 2020.

Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank said, “This facility – the second in a series – demonstrates the strong commitment of the Government of Japan to the African continent as it emerges from the Covid-19 pandemic. It will significantly bolster Afreximbank’s activities in financing vaccination acquisition and delivery on the continent. The Japanese government made a commitment to assist African countries to manage, and adjust to, the pandemic, and today’s announcement provides yet another evidence of this in action.”

Atsuo Kuroda, Chairman and CEO of NEXI said, “NEXI is pleased to contribute to the stable supply of vaccines in the African continent. This facility is in line with the endorsement made by the Japanese government at the TICAD7 held in 2019, to heighten support to the African countries through the use of private capital. NEXI will continue to solve social issues that African countries are facing.’