Bank Seals Risk Agreement

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The African Export-Import Bank (Afreximbank) and the CDC Group Plc have signed a $100-million master risk participation agreement to support Afreximbank’s trade facilitation Programme.

Under the terms of the risk participation arrangement, CDC would 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, Afreximbank’s Executive Vice President for Business Development and Corporate Banking, Amr Kamel, said the agreement would 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 would 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, the Director, Supply Chain Finance and Trade Finance of CDC, Admir Imami, who signed on behalf of his company, said the CDC was excited at the opportunity to work with Afreximbank and looked forward to many more joint projects and deals in the future.

CDC Group is a United Kingdom development finance institution