The African Export-Import Bank (Afreximbank) and CDC Group Plc. has signed a $100 million master risk participation agreement to support the bank’s Trade Facilitation Programme.
The terms of the risk participation arrangement signed in Casablanca, Morocco, indicate that CDC, which is a United Kingdom development finance institution, will provide unfunded risk participation to Afreximbank as the Bank provides trade finance products.
The trade finance products include trade confirmation services; trade confirmation guarantee; and irrevocable reimbursement undertakings.
Speaking during the signing ceremony, Amr Kamel, Afreximbank’s Executive Vice President for Business Development and Corporate Banking, said that agreement will support Afreximbank’s trade confirmation services under which the Bank provides confirmation lines to African financial institutions to support their trade businesses and increase capacity to undertake trade finance transactions.
Kamel said it will also support Afreximbank’s Trade Confirmation Guarantee Programme which offers full guarantee to international banks on behalf of African financial institutions, with the aim of resolving the issue of lack of credit limit by international/confirming banks for the African counterparts or situations of limited credit limit due to capacity constraints, among others.
Also speaking, Admir Imami, Director, Supply Chain Finance and Trade Finance of CDC, who signed on behalf of his company, said that CDC was excited at the opportunity to work with Afreximbank and looked forward to many more joint projects and deals in the future.