AFC, PTA BANK RENEW N4BN TRADE FINANCE DEAL
BY MICHAEL EBOH
Nigerian-based Africa Finance Corporation, AFC, has renewed its N4 billion (US$25 million) trade finance credit line agreement with Eastern and Southern African Trade and Development Bank, PTA Bank.
According to a statement by AFC, over the last two years, it has developed a strong business relationship with PTA Bank spanning different areas.
'Apart from the direct Trade Finance Credit Line, AFC additionally has a Risk Participation Agreement with PTA Bank, under which both institutions are financing the importation of co-mingled oil products into Zambia for refining into refined petroleum products.
'AFC's commitment to the Risk Participation arrangement is US$70 million, making a total of US$95 million in financing collaboration between AFC and PTA Bank,' the Nigerian-based bank stated.
Continuing, the bank stated, 'AFC is an African-led international financial institution, established in 2007 whose mission is to improve African economies by proactively developing and financing infrastructure, industrial and financial assets.
'AFC is involved as an investor, developer and financier of various infrastructure projects, and is gaining recognition as the benchmark institution for financing the development of infrastructure projects in Africa.
'The corporation is the Technical Adviser to the Central Bank of Nigeria, CBN, on the N320 billion (US$2.0 billion) Power and Aviation Intervention Fund (PAIF). It is also the lead investor in Cenpower Generation Company Limited (Cenpower), which is implementing the (US$450 million) Kpone IPP project - a 340 megawatt combined cycle gas turbine power plant in Tema, Ghana.
'AFC is the lead investor in the Main One fibre optic cable project, enhancing West Africa's connection to Europe and the rest of the world through faster and more technologically advanced broadband capacity. AFC recently provided financing to a leading Independent Power Producer (IPP) in Nigeria.'