NEXI Provides Loan Insurance for Afreximbank

Nippon Export Investment Insurance (NEXI; Chairman and CEO: Atsuo Kuroda) has decided to provide Overseas Untied Loan Insurance for a loan of USD 520 million, which will be extended by MUFG Bank, Ltd. and Mitsubishi UFJ Trust and Banking Corporation to the African Export-Import Bank (Afreximbank) that has launched a new facility, named Pandemic Trade Impact Mitigation Facility (PATIMFA), aiming to support African countries deal with the economic and health impacts of the Coronavirus (COVID-19) pandemic.

Through PATIMFA of Afreximbank, the loan is to be subleased to African countries’ projects of countermeasures against COVID-19.

As a financial assistance using Japanese investors’ funds under the Infrastructure Fund Scheme¹ established by NEXI in last December, this loan will also contribute to promote the diversification of private-sector resources because about 20 companies including Japanese banks and life insurers will take part in it.

In consideration of augmenting measures of support for the development of Africa, which was set as a target during the last year’s TICAD7, NEXI has encouraged active participation in the African market by Japanese investors in cooperation with Afreximbank, by providing various types of insurance products to protect their overseas investments against political and commercial risks that are not covered by private insurers.

As Japan’s export credit agency, NEXI will continue to support the international expansion of Japanese companies, while working closely with private financial institutions.

Reference:

Insured	MUFG Bank, Ltd., Mitsubishi UFJ Trust and Banking Corporation
Insured value	USD 520 million
Tenor	10 years
Type of insurance	Overseas Untied Loan Insurance
Covered risk	Political risk: 100%, Credit risk: 90%

About Afreximbank
The African Export–Import Bank (Afreximbank) is a Pan-African multilateral financial institution devoted to financing, promoting and expanding intra-and extra-African trade. For its 51 African member-countries, the Bank offers trade finance to contribute to establishment of solid supply chains, implements financial assistance, and supports industrialization.

Contact:
Infrastructure Group, Structured and Trade Finance Insurance Department
Telephone: +81-(0)3-3512-7674

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