The Egypt-based African Export-Import Bank (Afrexim) is planning to launch the syndication of a $250m loan deal on 8 April.

The export credit agency has appointed nine mandated lead arrangers to run the transaction and will offer investors an all in margin of 350 basis points above the London interbank offered rate (Libor).

Investors will be invited to commit to the deal in either dollars or euros and there will be one and two-year tranches. Proceeds will be used to refinance some of Afrexim’s existing loans.

Last year, the bank completed two loan deals which attracted strong interest from investors. The first, a $317.5m refinancing paid 325 basis points above Libor was completed in July, while in December Afrexim completed a $184m loan that was priced at 520 basis points above Libor. The December deal was substantially oversubscribed.

In October 2009, ratings agency Fitch gave the company a long term rating of BBB-, saying that although the bank is well capitalised, support from the 33 African countries that are Afrexim’s shareholders cannot be relied on.