Export Credit Line for PTA Bank

August 29,2016

Nippon Export and Investment Insurance

Nippon Export and Investment Insurance (NEXI) has agreed on an export credit line✽ with the Eastern and Southern African Trade and Development Bank (PTA Bank), a regional multilateral financial institution, at the sixth Tokyo International Conference on African Development (TICAD VI) held in Nairobi, Kenya on August 27 and 28.

The credit line will be offered to PTA Bank in the form of co-financing of up to USD80 million by Sumitomo Mitsui Banking Corporation (SMBC) and Japan Bank for International Cooperation (JBIC), and NEXI will set up a credit line totaling up to USD 40 million to provide a loan insurance for the financing extended by SMBC. By using the credit line, PTA Bank will provide loans to its clients, mainly in Sub-Saharan African countries, to import Japanese machinery and equipment.

This is the second agreement on export credit line signed between NEXI and PTA Bank, following the first credit line created for the bank in February 2007.

Since the previous TICAD meetings (TICAD V) in June 2013, NEXI has actively supported Japanese businesses in Africa by easing cover conditions of 19 countries in Sub-Saharan Africa and providing 100% political risk coverage for African countries under the NEXI ASIST (African Sustainable Export and Investment Support Insurance) program.

As a Japanese official export credit agency, NEXI will continue to promote Japanese businesses in Africa where there is a growing demand for infrastructure.

✽Export credit line is a form of export finance in which a certain amount of credit limit is established to promote export of Japanese goods and equipment.