The Nordic Investment Bank (NIB) has signed a 10-year loan programme of €100 million with the African Export-Import Bank (Afreximbank) to finance various infrastructure projects in African countries.
The €100 million made available to Afreximbank under the joint facility is for financing mainly infrastructure projects such as energy infrastructure, telecommunications, industrial parks and special economic zones, roads, railways and harbours. The loan will also allow NIB support export projects that include service and equipment deliveries from the Nordic and Baltic countries.
“We are pleased to announce our cooperation with Afreximbank in facilitating investments in African countries. Providing long-term capital to projects of mutual interest supports innovation and environmental protection,” said the President & CEO of NIB, Henrik Normann
All the projects considered for financing will be analysed by NIB to determine how sustainable its impact will be on productivity, climate change mitigation and the environment.
Executive Vice President, Business Development and Corporate Banking at Afreximbank, Amr Kamel expressed delight that NIB chose to partner with Afreximbank in the pursuit of Africa’s industrialization and export development.
“The facility will enhance Afreximbank’s capacity to implement our current strategy, which prioritizes industrialization and export development, by providing medium to long-term financing for trade-enabling infrastructure projects in our member states,” he said. “We are confident that the facility will have a significant impact on the Africa continent in terms of industrial development.”
NIB, an international financial institution owned by eight member countries, is in the business of financing private and public projects in and outside its member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The bank has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poors and Moody’s. Afreximbank, on the other hand, has for long been on the forefront of searching for ways to address Africa’s infrastructure deficit so this is good for the long-term plan.