Afreximbank and Uganda government finalise dual-tranche loan deal of €200m and $166m
The Pan-African multilateral financial institution that is financing and promoting intra- and extra-African trade, Afreximbank, has finalized a dual-tranche loan deal with the Ugandan government.
In a press release copied to Ghana Business News, the Bank said it has concluded what it describes as a landmark 10-year, dual tranche facility of €200 million and $166 million for the government of Uganda.
“The transaction was structured using the Bank’s innovative specialised finance solution, introduced to facilitate access to long term finance by African sovereigns and other eligible entities,” it said.
According to the release, the Bank was the sole Mandated Lead Arranger and Agent of the facility, and the Bank worked with multiple partners, including risk mitigation providers.
It indicated that 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 transaction, it notes, which is the first of its kind to be implemented by an African Multilateral Financial Institution, will assist Uganda in achieving its trade infrastructure development and industrialisation objectives, it said.
Commenting on the deal, Professor Benedict Oramah, President and Chairman of the Board of Director of Afreximbank said: “We are proud that our efforts to provide tailored, flexible and innovative financial solutions to support our member states in achieving their ambitious development aspirations are once again proving effective.
This landmark transaction is timely and will have a significant impact on Uganda’s development. 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.”
Simmons & Simmons and ENS Africa acted as legal advisors for the transaction, with Marsh acting as the broker and risk mitigation advisor, the release added.
By Emmanuel K. Dogbevi