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Under the ECA Loans Facilitation Programme, the Bank selectively works with other ECAs to promote the acquisition of essential goods, especially capital goods by African institutions.

Purpose:
Through this programme, the Bank provides guarantees to enable ECAs finance Eligible Imports into Africa. The Bank may also take Lines of Credit from the ECAs for direct disbursement to its clients for importation of goods from the country of origin of the creditor ECA.

Under the Programme, the Bank also grants Lines of Credit to ECAs in support of Africa’s exports to the country of origin of the ECAs.

Eligible ECAs:
All export credit agencies with preference given to African ECAs and ECAs who are members of Afreximbank.

Qualifying Transactions:

  • Export generating imports into Africa, namely equipment and raw materials
  • Essential imports;
  • Engineering and consultancy services that facilitate exports from Africa provided that the services are not available in African or are needed as a component of relevant ECA financing; and
  • Eligible Exports of Africa to the Countries of origin of relevant ECAs.

Instruments:

  • Letter of Credit Confirmation to beneficiaries in country of origin of relevant ECA or in Africa for exports from Africa;
  • Reimbursement guarantees to ECAs in respect of Letters of Credit Confirmation by relevant ECAs for Eligible Transactions;
  • Forfaiting; and
  • Risk participation into Letters of Credit confirmed by relevant ECAs.

Pricing:
Linked to the Libor and related to country risk, transaction risk and market conditions.

Tenor:
Up to 7 years depending on the transaction.

Documentation:
Facility Agreement, Participation or Sub-Participation Agreement, as the case may be, and any other relevant security agreements.

Information Required:
The loan Agreement, history of relationship between parties involved in the underlying transaction, information on goods financed, etcetera.

Dispute Resolution:
Between the Bank and Beneficiaries

  • Resolution of disputes will be governed by English law.

Between the Bank and an ECA

  • Dispute resolution will be under UNCITRAL arbitration rules as may from time to time be in force.

How to Access Programme:
ECAs can access the Programme by making a direct proposal to the President of the Bank stating the nature of relationship in terms of guarantees/funding, export items to be covered, etc. A detailed report on the activities of the ECA, in Africa is also required.
Prospective corporates and commercial banks can access the programme by sending their application to the President of Afreximbank.

The application must contain detailed information on the organization, ownership, history, management’s experience in the line of business, 3-year financial statements, as well as detailed information on the transaction for which the financing is sought, the country of operation, etc.

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