Egyptian export credit agency to decide on increasing loan deal by mid-May
The Egypt-based African Export-Import Bank (Afrexim) is expected to make a decision regarding the increase in size of a loan deal originally launched at $250m by mid-May.
Sources close to the deal say that after the syndication of the loan closed on 30 April with a significant oversubscription from banks, Afrexim has been considering increasing the size of the deal (MEED 25:4:10).
“Documentation has been circulated to the bank group and allocations are expected to be made by mid-May, the deal should then close before the end of the month,” says a source close to the deal.
Documentation has been circulated to the bank group and allocations are expected to be made by mid-May
Source close to the deal
The deal is being arranged by nine lead arrangers, Bahrain’s Arab Banking Corporation, the UK’s HSBC and Standard Chartered, South Africa’s Standard Bank, Germany’s WestLB and Commerzbank, Austria’s RZB, Industrial and Commercial Bank of China and Bank of Tokyo Mitsubishi.
The deal is currently split between a $150m tranche and a €74m ($95m) tranche. Both will have a tenor of about 10 months. The total return on the deal is slightly above 325 basis points above the London interbank offered rate (Libor), split between a 2 per cent margin and fees of 125 basis points.
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