Afreximbank signs off on $3B worth of credit facilities to Egyptian companies

Egyptian companies have been granted credit facilities worth $3 billion by the African Export-Import Bank (Afreximbank) to support infrastructure projects across Africa, according to Ayman El-Zoghby, Acting Director of Trade and Corporate Finance at Afreximbank.

El-Zoghby told local media that the bank signed agreements with Hassan Allam Holding, Elsewedy Electric, and Arab Contractors on the sidelines of the Intra-African Trade Fair (IATA 2023) being held in Cairo.

The trade director shared that the bank and Hassan Allam Holding signed a $200 million credit facility to support its projects across Africa and the Middle East. The deal included time loans, discounting, and special guarantees to be distributed to Hassan Allam Construction and affiliated companies within the Hassan Allam Group.

Elsewedy Electric closed a deal with the bank for $300 million to finance letters of guarantee for contracting businesses and working capital to implement its African projects.

Similarly, Arab Contractors received a $200 million facility to help fund its letters of guarantee for its continental projects.

The remaining $2.4 billion will be distributed to undisclosed companies in Egypt.

The Afreximbank seeks to increase its support of companies in Egypt by approximately $10-12 billion, targeting companies within the fields of medicine, construction, and more, explained El-Zoghby.

El-Zoghby shared that Afreximbank’s financing portfolio in Egypt stands at around $28 billion, noting that the bank has supported numerous companies in 52 African countries.

On Sunday, the bank’s president, Benedict Oramah, announced the launch of an African cross-border trade system, worth an estimated $1 billion, to support continental integration, and economic growth, and strengthen the competitiveness of cross-border trade.