Overview

China Development Bank provides $400 million loan to Afreximbank for on-lending purposes in 2023

Commitments (Constant USD, 2023)$400,000,000

Commitment Year•2023Country of Activity•Africa, regionalDirect Recipient Country of Incorporation•Africa, regionalSector•Banking And Financial ServicesFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Aug 28, 2023

Last repayment (originally scheduled): Aug 26, 2030

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

China Development Bank (CDB)

Receiving agencies

Intergovernmental Organizations

African Export-Import Bank (Afreximbank)

Implementing agencies

Intergovernmental Organizations

African Export-Import Bank (Afreximbank)

Loan description

China Development Bank provides $400 million loan to Afreximbank for on-lending purposes in 2023

Interest type•UnknownMaturity•7 years

Narrative

Full Description

Project narrative

On August 28 2023, China Development Bank (CDB) and the African Export-Import Bank (Afreximbank) signed a $400 million term loan facility agreement. The loan carries a 7-year maturity. However, the other borrowing terms of the loan are unknown. The borrower is expected to use the loan proceeds to on-lend to African small- and medium-sized enterprises (SMEs) involved in extra- and intra-African trade and those engaged in the productive sectors in Afreximbank Member States. More specifically, the loan proceeds can be used by the borrower either directly to support eligible African SMEs that meet Afreximbank’s requirements or indirectly through local financial intermediaries.

Staff comments

1. African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution