Afreximbank grants $200 million financing to Arab contractors

Afreximbank grants $200 million financing to Arab contractorsThe Egyptian construction conglomerate, The Arab Contractors (Osman Ahmed Osman & Company) Limited on 26 July 2017 entered into an agreement with the African Export-Import Bank (Afreximbank) to receive a $200 million multi-currency guarantee facility to enable it meet its obligations under construction contracts within Africa and the Middle East.

The facility agreement signed at the Afreximbank Headquarters provides for issuance of guarantees up to $200 million, in United States Dollars or Euros, to The Arab Contractors (Osman Ahmed Osman & Company) Limited and its subsidiaries in respect of construction contracts in Africa and the Middle East.

Dr Benedict Oramah, President of Afreximbank, said that the signing of the agreement demonstrated Afreximbank’s strong commitment to promoting intra-African trade and to supporting key intra-African trade players in the continent, referred to as Intra-African Trade Champions or Intra-Champs.

“Arab Contractors are indeed Intra-Champs, present in several African countries and helping to build and develop critical infrastructure, representing an institutional icon that deserves the full support of Afreximbank,” he said. “We are therefore proud of the partnership that this facility promises to build between Afreximbank and Arab Contractors – a partnership that can only make Africa better integrated and stronger.”

Dr. Oramah noted that, in recent years, the Bank had supported large Egyptian entities to export goods and services to other African countries, with such support currently amounting to no less than $1.5 billion out of the Bank’s overall $4 billion exposure to Egypt.

Mohammed Salah, Chairman of The Arab Contractors (Osman Ahmed Osman & Company) Limited, said that the granting of the facility represented a giant leap in the strategic partnership between Afreximbank and his company towards helping develop the African economy, particularly the infrastructure sector.

The Arab Contractors had vast experience and a good track record in Africa and the facility would strengthen its capacity to be a vehicle for execution of projects in Africa by international financial institutions, he added.

Commercial International Bank (CIB) Egypt is the local administrative agent for the facility which has a five year tenor.