The African Export-Import Bank (Afreximbank) has provided a US$250mn future flow pre-financing to the government of the Republic of the Congo to support its oil fields plans.
According to a statement by Afreximbank, the transaction will support Congo’s government to finance and expand upstream oil production activities, expand oil exports and improve foreign exchange earnings, and support productive activities to help it diversify away from oil.
The facility forms part of a US$1bn syndicated loan commitment that Congo has mandated Afreximbank to raise for the country, which will cater for capital investment financing requirements for oil production increases and finance trade-related investments in the oil and gas sector, says Afreximbank president Dr Benedict Oramah.
He adds that the bank has stepped in with innovative programmes to mitigate the adverse economic impact of low oil prices on its member states.
The loan brings the total financing from Afreximbank to Congo’s economy to US$1bn since the country’s membership was formalised in 2013, according to an Afreximbank spokesperson.