The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | THE INDEPENDENT | African Export-Import Bank has clinched the prestigious “Sustainable Deal of the Year” award for its groundbreaking efforts in establishing the Liquidity and Sustainability Facility (LSF).
This recognition, presented by Uxolo Global 2023: Development and Impact Finance and co-hosted by TXF, celebrates Afreximbank’s role in enhancing liquidity and demand for Eurobonds issued by African Sovereigns through the LSF.
The LSF, a pioneering initiative, aims to bolster liquidity in Africa’s financial markets by fostering the development of a more robust repurchase agreement (“repo”) market on the continent. In comparison to developed markets, Africa’s current repo market is at a lower level, and the LSF seeks to address this gap. Mature repo markets in developed economies contribute to lower borrowing costs and increased debt sustainability for Sovereign bond issuers.
Afreximbank, serving as a funding and strategic partner, extended a US$200-million revolving loan facility to the LSF in November 2022. This facility, acting as a funding counterparty, supports African Sovereign Eurobonds repo transactions. The success of this collaboration led to the renewal of the facility in 2023 for new transactions.
With an initial seed funding of US$200 million and the engagement of top-tier service providers, the LSF has set an ambitious target to secure up to US$5 billion in financing in the medium term.
Prof. Benedict Oramah, President and Chairman of Afreximbank, expressed his appreciation for the award, emphasizing the bank’s commitment to positively impacting Africa’s financial markets.
It is a great achievement.