The African-Export Import Bank (Afreximbank) said the closing of a US$2bn syndicated loan, its largest ever, showed “robust and undisputed” support from international capital markets despite a dispute with ratings agencies.
The multilateral lender’s three-year term loan includes a US$1.73bn US dollar tranche and a further €228mn euro tranche, which will be used to refinance existing borrowing and general corporate purposes.
Thirty-one lenders from Europe, the Middle East, Asia and Africa participated in the deal, the bank said.
Mashreqbank, MUFG and Standard Chartered acted as joint global co-ordinators, initial mandated lead arrangers and bookrunners. Standard Chartered also took the role of documentation agent and as the facility agent.
The bank did not release a full list of lenders.
“This transaction is the largest ever syndicated facility borrowing by Afreximbank,” said Chandi Mwenebungu, Afreximbank’s managing director, treasury and markets, and group treasurer.
“It is a clear demonstration of the global investors’ confidence in the bank’s credit story. This, clearly, affirms the bank’s robust and undisputed access to international markets.”
His comments came after Afreximbank’s credit ratings suffered downgrades last year. Fitch assigned the bank a BBB- rating while Moody’s adjusted its rating from BAA1 to BAA2.
An ensuing row saw Afreximbank cut ties with Fitch earlier this year. The ratings agency suggested the bank was under-reporting its non-performing loan ratio and noted concerns over large exposures to Ghana and Zambia, while Afreximbank claimed Fitch had failed to understand its mandate.
