The African Export-Import Bank (Afreximbank) has signed documents to complete the registration of a N300 billion medium-term note with the Securities and Exchange Commission under the Bank’s local currency programme. The signing ceremony which held yesterday in Lagos is the bank’s first-ever Afreximbank local currency fund raising programme in the country.
Speaking on the importance of the deal, the President of the bank, Prof. Benedict Oramah, described the ceremony as historic, adding that the Naira debt capital market activity which the programme would unlock would open the door to a new value-added relationship between Afreximbank and Nigeria. He explained that, over the last few years, many of the bank’s key clients had made requests for local currency funding, saying that Afreximbank designed and launched a local currency programme in 2016 with the primary aim of providing financing to African entities
“In addition, we believe that using the debt capital markets in our member countries to raise the funding would contribute to the development of capital markets in those countries”, Oramah explained.
He noted that there would be need to create productive capacities at national and regional levels and some businesses would require re-tooling while others would need to expand key production units and secure reliable sources of local raw materials.