Trading

Congo gets $250m Afreximbank loan

The African Export-Import Bank (Afreximbank) says it has provided $250 million to Republic of Congo to meet the country’s oil fields challenges.

A statement on Thursday in Lagos by Afreximbank said the facility agreement was signed by Afreximbank President Dr Benedict Oramah and Calixte Ganongo, Minister of Finance of the Republic of Congo.

Oramah said the facility was part of a $1-billion syndicated loan commitment which the government had mandated Afreximbank to raise for the country.

The loan is to cater for capital investment financing requirements for oil production increases and to also finance trade-related investments in the oil and gas sector.

Oramah noted that the bank stepped in because the current low oil prices had continued to put unimaginable pressures on governments of oil exporting countries in Africa, including the Republic of Congo.

Ganongo was quoted as commending the support extended to his country by Afreximbank.

He said the Republic of Congo had turned to the bank because it believed in tapping into the continent’s resources.

Ganongo pledged that Congo would meet its obligations to the bank and would do everything to support its work.

Also speaking, Raphael Malonga, Ambassador of the Republic of Congo to Egypt, urged Afreximbank to maintain its current momentum in addressing the trade finance needs of member countries.

Afreximbank is the foremost Pan-African multilateral financial institution devoted to financing and promoting intra- and extra-African trade.

The bank was established in October 1993 by African governments, African private and institutional investors, and non-African investors.

Since 1994, it has approved more than $41 billion in credit facilities for African businesses, including about $6.2 billion in 2015.

Afreximbank had total assets of $9.4 billion as at April 30, 2016 and is rated BBB- (Fitch) and Baa2 (Moody’s).

Source: Voice of Nigeria