Nigeria: MUFG, Afreximbank Seal U.S.$520 Million Deal

MUFG and the African Export-Import Bank (Afreximbank) have closed a ground-breaking $520 million facility, the first to be covered by Nippon Export and Investment Insurance (NEXI).

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).

According to a statement, MUFG was the sole Mandated Lead Arranger, Bookrunner, Agent and NEXI Coordinator on the transaction, with the documentation that closed on December 3, 2020. It stated that 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 industrialisation. These objectives find common ground with NEXI’s objectives of supporting sustainable African growth and development in line with TICAD objectives.

Afreximbank will use the proceeds towards its Pandemic Trade Impact Mitigation Facility (PATIMFA) which was launched in March, 2020, to help African sovereigns, commercial banks and corporates to weather the impact of the crisis due to the COVID-19 pandemic.

The facility will support the Bank’s interventions in response to the COVID-19 pandemic and will be used to finance trade and trade related investments which contribute to the sustainable development of the socioeconomic, health, manufacturing, environmental, agri and agri-related sectors across the 51 African Member States of Afreximbank.

Working together with NEXI and Afreximbank, MUFG was able to access under-utilised 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.

Speaking on the transaction, Christopher Marks, Head of Emerging Markets EMEA, commented: “This facility marks a watershed moment for African institutions looking to tap the Japanese investor pool, and we couldn’t be prouder to have played a leading role.”


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