The African Export-Import Bank (Afreximbank) has closed a US$872mn multi-tranche dual-currency syndicated term loan facility with 26 banks.

Proceeds from the loan will be used for trade finance and general corporate purposes.

The transaction includes a US$316mn Tranche A1 and a €105mn Tranche B, each with a two-year tenor, and a US$445mn Tranche A2 with a tenor of three years.

The margins of the two and three-year tranches, at 130 and 150 basis points (bps) respectively, represent the lowest rates that Afreximbank has secured on a syndicated loan to date, the bank says in a statement.

Launched at US$600mn, 14 banks joined the 12 initial mandated lead arrangers and bookrunners in general syndication, taking the facility size to approximately US$872mn combined.

The lenders were a mix of institutions from the Middle East, Europe and Asia Pacific. General syndication invited US-dollar commitments only, in which the three-year facility attracted 73% of the raised funds.

The initial mandated lead arrangers and bookrunners were Bank ABC, Bank of Tokyo-Mitsubishi, Barclays, Commerzbank, First Gulf Bank, HSBC, Industrial and Commercial Bank of China, Mizuho, National Bank of Abu Dhabi, Rand Merchant Bank, Standard Chartered and Sumitomo Mitsui Banking Corporation.

Commerzbank acted as the sole co-ordinator and documentation agent, while Standard Chartered was the facility agent.