The African Export-Import Bank (Afreximbank) has raised the equivalent of US$907.5mn after sealing a dual-currency syndicated loan with a dozen banks.

The facility has a tenor of up to 15 months and comes with a US$485mn tranche and a €390.4mn tranche.

Initially launched in early April to a limited group of relationship banks for an equivalent amount of US$600mn, the facility was subsequently raised after being oversubscribed by more than 50%.

Afreximbank says that the facility could rise to an equivalent value of US$1.1bn, as an accordion feature will allow the bank to raise more money after the facility’s signing date.

Proceeds will partly be used to refinance an upcoming syndicated loan maturity for a dual-tranche US$352.9mn and €499.6mn term loan struck in May 2017.

Afreximbank says that the excess amount will be used to fund the bank’s growth, which includes the implementation of its US$3bn Pandemic Trade Impact Mitigation Facility (Patifma).

Announced in March, Patimfa aims to “avert a major crisis in Africa” and help the bank’s member countries weather the economic and health impacts of Covid-19.

As part of Patimfa, the bank has committed to providing financial support to more than 50 nations through direct funding, lines of credit, guarantees, cross-currency swaps and other similar instruments.

Speaking about the latest dual-currency loan agreement, Afreximbank’s president Benedict Oramah says: “The final deal size and the relatively short period over which the funding was raised reflect the high regard and confidence the market has in Afreximbank’s financial strength and its importance to the continent.”

He adds: “Afreximbank intends, in due course, to issue additional syndicated loans. The bank looks forward to the continued support of the loan market at that time.”

Emirates NBD, MUFG and Standard Chartered acted as joint global co-ordinators, initial mandated lead arrangers (MLAs) and bookrunners on the facility.

MUFG acted as documentation agent and Standard Chartered as facility agent.

Other MLAs and bookrunners include: Bank ABC, HSBC, State Bank of India, Industrial and Commercial Bank of China, Mizuho Bank, Rand Merchant Bank (RMB) and Sumitomo Mitsui Banking Corporation (SMBC).

Meanwhile Commerzbank and First Abu Dhabi Bank acted as MLAs.