Afreximbank throws Dangote $1b lifeline

• Heirs Holdings Nets $100m

African Export-Import Bank (Afreximbank) yesterday, in Kigali,Rwanda, signed agreements to provide financing facilities totaling $1.1b to support African entities engaged in intra-African trade.

However, Africa’s major conglomerate -Dangote Industries Limited,emerged the largest recipient of $1b facility from the region’s biggest trade bank.The signing ceremonies, which held on the sidelines of the ongoing 24th yearly general meeting of Afreximbank, were in support of the bank’s strategy to facilitate the growth of intra-African trade.

This came, just as the bank recently raised more than $1.5b in various syndications, which it said is targeted at financing of African businesses at cheaper rates, as well as foster regional integration.

The terms of the deal with Dangote Industries Limited provides for credit facilities that may “be granted by Afreximbank to Dangote Industries Limited and its subsidiaries in an aggregate amount of up to one billion dollars.”

It also provides for collaboration between Afreximbank and Dangote Industries Limited in respect of proposed funding of transactions, which could involve the provision of short and long-term liabilities for trade-related projects in Africa.

A brief on the MOU says utilisation of the facility would boost intra-African trade volumes, enhance continental value chains and increase production and export of goods and services across Africa.

Similarly, a $100m facility was granted Heirs Holdings Limited, a pan-African proprietary investment holding company, to further support its cross border investment programme.The facility terms, the brief added, took into consideration that Heirs Holdings has a portfolio of investments in key sectors in 20 African countries, including energy, financial services, real estate and hospitality.

Also, during the day a facility agreement for a $10m amortising term loan facility to the Development Bank of Rwanda Limited (BRD) was signed to support the country’s power and manufacturing projects in the country.

A note on the seven-year facility explained that it would finance projects that were in line with Afreximbank’s strategy aimed at promoting industrialisation and export development.

This would contribute to an increase in Rwanda’s electricity generation and consumption, thereby enhancing the growth of the country’s manufacturing and export sectors.President of Afreximbank, Dr. Benedict Oramah, signed the agreements on behalf of the bank, while President of Dangote Industries Limited, Alhaji Aliko Dangote; Chairman of Heirs Holdings, Tony Elumelu; and Chief Executive Officer of BRD, Alex Kanyankole, signed on behalf of their respective organisations.