PROPOSED GUARANTEE PROGRAMME

Kofi AsumaduManager

Syndications And Specialized Finance

Staff Communication ForumJanuary 22, 2016

Cairo, Egypt

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1. Introduction/ Nature of the Guarantee Programme

2. Rationale for the Guarantee Programme

3. Products offered under the programme

4. Means of deployment(channels of distribution)

5. Q&A

Outline

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What is it?

Unfunded products packaged under one umbrellacalled Afreximbank Guarantee(AFGAP).

Is it new?Yes, the programme is new but the facilities underare not all new although some may be new.

1. Introduction/ Nature of the Guarantee

Programme

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Fulfil one of the Bank’s core mandate of using RiskBearing Instruments (“RBI”) to promote trade andtrade-related investment in Africa;

Leverage the Bank’s resources including its specialstatus and strength in member countries to attractfinancing to Africa;

De-risk aspects of trade and trade- relatedtransactions in Africa through the use of the Bank’scredit enhancement facilities.

2. Rationale for AFGAP

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Broaden the Bank’s product range by offering avariety of financing instruments/ options to clientsin Africa;

Ensure effective and optimal usage of the Bank’srisk capital;

Deepen collaboration with private insurancemarket, ECAs, DFIs and other specialized financeinstitutions to create capacity to support growingdemand for trade finance in Africa;

4. Rationale for AFGAP (continue..)

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Diversify income sources and enhance the overallincome levels of the Bank through fees charged onthe Bank’s risk guarantee programme.

In the medium to long term, look to establish a full-fledged export credit and trade insurance businessin Africa in line with the mandate of the Bank.

4. Rationale for AFGAP(continue…)

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• Financial Guarantees - Debt substitutes

• Performance Guarantees- Credit risk mitigants

Products

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• Export Guarantee programme

• Reimbursement Undertakings(IRU)

• Standby Letters of Credit

• Other LCs - Domestic LCs and LC confirmation facilities

• Letters of Guarantee

• ECA Plus (a guarantee facility under the Bank’s ELFP)

Instruments- Financial Guarantee

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• Project Completion Guarantee facilities.

• Other Project Related Guarantee facilities

• Investment guarantee facility

• Country Risk Guarantee facility

• Market Availability facility

• Guarantee Programme in Support of African Government Commitments to Project Promoters

Instruments-Performance Guarantee

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Eligible Beneficiaries:

• Financial Institutions Banks and Non-Bank financial institutions

• Non-Financial Institutions

Corporates, Sovereign/quazi-sovereign, SMEs, Projects and Specific transactions.

Beneficiary/Channels of Delivery

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The Bank’s Exim plus agenda seeks to position theBank as a comprehensive trade facilitation andfinancing solution centre in Africa.

3. Exim plus agenda

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Q&A