Extending Export Credit Line to Afreximbank
Supporting Exports to 51 Member States in Africa
- Region: Africa
- Machinery and Equipment
- Export Loans
The Japan Bank for International Cooperation (JBIC; Governor: Tadashi Maeda) signed on May 31 a general agreement for providing an export credit line*1
, denominated in USD and EUR and amounting up to USD180 million equivalent, with the African Export-Import Bank (Afreximbank), a regional development financial institution in Africa. (See the attachment
for the bank's outline.) The loan is co-financed with private financial institutions, bringing the total co-financing amount to USD300 million equivalent. The co-financed portion is covered by insurance from Nippon Export and Investment Insurance (NEXI).
The credit line is extended, via Afreximbank, to projects in member states (51 countries) in Africa to provide funds for the import of machinery and equipment from Japanese companies and their overseas affiliates. Demand for machinery and equipment, which are needed for economic development, is expected to continue to expand in Africa. In light of this, this credit line is being set up to financially support the efforts of Japanese companies and their overseas affiliates to expand exports to this region. It is also expected to help further strengthen the economic relationship between Japan and Africa*2
The 7th Tokyo International Conference on African Development (TICAD7) is scheduled to be held in Yokohama in August 2019. As Japan's policy-based financial institution, JBIC will continue to financially support the expansion of Africa-bound exports from Japanese companies, as well as increase opportunities to participate in projects in the region, by drawing on its various financial instruments for structuring projects and performing risk-assuming functions.
An export credit line is a form of export finance in which JBIC commits to a certain amount of financing in advance to promote the export of machinery and equipment from Japanese companies and their overseas affiliates.
JBIC, in March 2012, signed a general agreement and loan agreement to set up an export credit line for Afreximbank. This is the second such general agreement with Afreximbank. See press release dated March 30, 2012