Afreximbank, CDC Group Sign $100 Million Master Risk Participation Agreement
The African Export-Import Bank (Afreximbank)
and CDC Group Plc. yesterday in Casablanca, Morocco, signed a $100-million
master risk participation agreement to support Afreximbank’s Trade Facilitation
Programme.
Under the terms of the risk participation
arrangement, CDC will provide unfunded risk participation to Afreximbank as the
Bank provides trade finance products that include trade confirmation services;
trade confirmation guarantee; and irrevocable reimbursement undertakings.
Speaking during the signing ceremony, Amr
Kamel, Afreximbank’s Executive Vice President for Business Development and
Corporate Banking, said that agreement will support Afreximbank’s trade
confirmation services under which the Bank provides confirmation lines to
African financial institutions to support their trade businesses and increase
capacity to undertake trade finance transactions.
It will also support the Afreximbank Trade
Confirmation Guarantee Programme which offers full guarantee to international
banks on behalf of African financial institutions, with the aim of resolving
the issue of lack of credit limit by international/confirming banks for the
African counterparts or situations of limited credit limit due to capacity
constraints, among others.
Also speaking, Admir Imami, Director, Supply
Chain Finance and Trade Finance of CDC, who signed on behalf of his company,
said that CDC was excited at the opportunity to work with Afreximbank and
looked forward to many more joint projects and deals in the future.