NEXI Provides Loan Insurance for Afreximbank (COVID-19 Vaccine and Healthcare Finance Facility)/
LEAD Initiative Project

March 17, 2022

Nippon Export and Investment Insurance

Nippon Export and Investment Insurance (NEXI; Chairman and CEO: Atsuo Kuroda) has decided to provide Overseas Untied Loan Insurance for a loan of total USD 207 million extended by MUFG Bank, Ltd. and Mitsubishi UFJ Trust and Banking Corporation to African Export-Import Bank (Afreximbank), a Pan-African multilateral financial institution. The insurance is offered in line with NEXI’s LEAD Initiative1 launched in December 2020.

Afreximbank is one of the main partners of the African Vaccine Acquisition Trust (AVAT), a framework established by the African Union for the purpose of securing access to COVID-19 vaccines. Through AVAT, the loan facility will be used to ensure a stable procurement of the vaccines in Africa. It will also be subleased to government agencies and institutions of the African countries that are important partners and key markets for the Japanese companies with their business development in the region and will serve to widely support projects in medical equipment procurement, maintaining medical services and providing healthcare and hygiene services.

The project employs infrastructure fund and project bond scheme2 in collaboration with Mitsubishi UFJ Financial Group (MUFG Bank, Ltd., Mitsubishi UFJ Trust and Banking Corporation and Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.), leveraging diverse private funding sources with a participation of more than 10 financial institutions, mainly banks, life insurance companies and institutional investors. The same approach was taken upon NEXI’s underwriting of an insurance for a loan made to Afreximbank in December 2020.

In the TICAD7 held in 2019, Japan endorsed to enhance its contribution to the nations of Africa by utilizing private capital. In light of such approach and through collaboration with the Afreximbank, consisting of 51 African member states, NEXI aims to assist the African countries from financial aspects while they address their urgent issues in vaccine procurement. It also intends to promote Japanese private financial institutions’ business development into the African market by reducing the risks that are not covered by private insurers through NEXI’s trade insurance, and to propel economic cooperation in the private sectors with an increased Japanese presence.

NEXI will continue to work with private financial institutions and sectors to advance the LEAD Initiative, and while utilizing diverse private funds, contribute to solve social issues and achieve SDGs in the countries in which Japanese businesses operates or seeks to develop into.

Insured MUFG Bank, Ltd., Mitsubishi UFJ Trust and Banking Corporation
Insured Amount USD 207 million
Tenor 10 years
Type of Insurance Overseas Untied Loan Insurance
Covered Risks Political risk: 100%, Credit risk: 90%

About African Export-Import Bank

The African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution with 51 African member states. The bank offers trade financing for intra- and extra-African trade and the building of robust supply chain, provides financial assistance to its member nations, and encourage industrialization in the region.

About African Vaccine Acquisition Trust (AVAT)

AVAT is a framework to access COVID-19 vaccines incorporating pooled procurement by the African Union Member states, which was set up in November 2020 by former Chairperson of the African Union, Cyril Ramaphosa. Its mission is to secure necessary vaccines and financing resources to achieve the target of vaccinating 60% of Africa’s population.

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

  • 1 In December 2020, NEXI announced the LEAD Initiative to respond to the business environment with and after the COVID-19. This initiative is intended to actively promote the underwriting of projects, with a focus on contributing to global carbon neutrality, solving social issues, and achieving the SDGs. Under this initiative, we aim to underwrite insurance of total value of JPY 1 trillion by the end of fiscal 2025, while diversifying our funding sources not only from traditional capital providers, but also from institutional investors, etc.
  • 2 NEXI news release, June 10, 2019.