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| GTLP Afrexim |
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| Summary of Proposed Investment |
| This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
| Project number | 28399 |
| Company name | African Export-Import Bank |
| Country | Egypt |
| Sector | Finance & Insurance |
| Environmental category | C |
| Department | Global Financial Markets Group |
| Status | Pend FAP |
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| Date SPI disclosed | October 22, 2009 |
| Projected board date | December 3, 2009 |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
The project is for IFC and funding partners (countries, development finance institutions and international financial institutions) to provide trade financing of up to $200 million to African Export Import Bank (“Afreximbank” or the “Bank”) headquartered in Cairo, Egypt, as part of IFC’s Global Trade Liquidity Program (“GTLP”).
GTLP is part of IFC’s multi-faceted global financial crisis response. It is a funded trade finance program of up to $8 billion that will be mobilized and disbursed in phases to provide IFC with a flexible platform from which to support the extension of funded trade financing to under-served clients globally. The proposed total IFC investment would be up to $1 billion, which will be match-funded with resources from other funding partners as well as several international banks with an established footprint in emerging markets trade finance. |
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| Project sponsor and major shareholders of project company |
| Afreximbank was established in Abuja, Nigeria in October 1993 by African Governments, African private and institutional investors as well as non-African financial institutions and private investors for the purpose of financing and promoting intra- and extra-African trade. The Bank was established under the twin constitutive instruments of an Agreement signed by member states and multilateral organizations, and which confers on the Bank the status of an international organization; as well as a charter governing its corporate structure and operations, signed by all Shareholders. The Bank is headquartered in Cairo and has branch offices in Harare, Zimbabwe, and Abuja, Nigeria. The Bank specializes only in trade finance and has portfolio operations in 15 African countries. |
| Total project cost and amount and nature of IFC's investment |
| As part of IFC’s Global Trade Liquidity Program, the funding to Afreximbank will be for up to $200 million to support the extension of funded trade financing to Afreximbank’s clients. |
| Location of project and description of site |
| Afreximbank is headquartered in Cairo, Egypt. |
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| Anticipated development impact of the project |
| The project is expected to have a significant development impact by increasing funding for trade of consumer goods, intermediate goods, smaller machinery and commodities demanded by emerging market enterprises. |
| IFC's expected development contribution |
| IFC’s global franchise in financial markets will be critical to the project’s success in leveraging trade volumes, expanding new markets and facilitating the growth of ‘south-south’ trades. |
| Environmental and social issues - Category C |
| This project involves IFC support for the business of Trade Finance. This is a Category C project according to IFC’s Environmental & Social Review Procedure. Each trade pool will be supported by underlying documentation with the designated bank. The agreement with Afreximbank will specify that the underlying goods to the transaction will meet the requirements of the IFC Exclusion List and require the Bank to report on implementation on an annual basis. IFC will review the details of the underlying trade transactions. |
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| For inquiries about the project, contact: |
Mr. Samuel H. Mugoya
Principle Officer
Specialized Funding Unit
African Export-Import Bank
World Trade Center, 1191 Corniche El Nil, Cairo 11221, Egypt
Ph: +202 2578-0282
E-mail: smugoya@afreximbank.com |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
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