Afrexim to increase loan size after oversubscription

26 April 2010

Deal is scheduled to close on 30 April

The Egypt-based African Export-Import Bank (Afrexim) is expected to increase the size of a $250m loan deal it is currently raising following a large oversubscription from banks.

The syndication of the deal is scheduled to close on 30 April, and bankers close to Afrexim say there still several banks that are still waiting for internal approvals before they respond to the loan invitation.

Since banks have said they are willing to lend the export credit agency more than it is asking for, Afrexim is now planning to increase the size of the loan. Banks were invited to fund the Afrexim loan on 8 April. The deal is currently split between a $150m tranche and a €74m tranche. Both will have a tenor of around 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.

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 nine banks have also provided funding for another two year loan for Afrexim.

The deal follows other successful loans in the region that have closed recently. Mubadala completed a $2.5bn loan in late April after receiving commitments of around $4bn. The loan was priced at just 75 basis points above Libor and was originally launched at $2bn.

At the same time Qatar Telecom (Qtel) has appointed eleven banks to act as mandated lead arrangers for its own $2bn refinancing. The banks are France’s BNP Paribas and Societe Generale, Qatar National Bank, the UK’s HSBC, Standard Chartered, Royal Bank of Scotland and Barclays Capital, Japan’s Bank of Tokyo-Mitsubishi and Sumitomo Mitsui Banking Corporation, the US’ Citigroup, Saudi Arabia’s Samba, Germany’s Deutsche Bank and WestLB, and Singapore’s DBS Bank.

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