Cairo, 27 January 2022 – African Export Import Bank (Afreximbank) has concluded a landmark 10-year, dual tranche facility of €200 million and US$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.
Afreximbank was the sole Mandated Lead Arranger and Agent of the facility. The Bank worked with multiple partners, including risk mitigation providers. 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, 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, thereby promoting the growth of Uganda’s exports and contributing significantly to the country’s economic growth and development in line with its National Development Plan.
Professor Benedict Oramah, President and Chairman of the Board of Director of Afreximbank, commented:
“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.