Export-Import Bank of China (Cexim) has extended a US$600 million loan to the African Export-Import Bank (Afreximbank) for on-lending and trade finance transactions.

The loan will facilitate and finance trade and economic cooperation between member states of Afreximbank and the People’s Republic of China, and help promote financial cooperation between Africa and China, enhancing the flow of goods, capital, and technology.

Milbank advised Cexim on the Afreximbank loan, and also on a US$300 million loan facility to Africa Finance Corporation (AFC).

Cexim’s financing will support AFC’s work as a leading solutions provider in the core infrastructure sectors of power, natural resources, heavy industry, transport and telecommunications. The two institutions have collaborated since 2018, with AFC receiving US$400 million in bilateral loans to date.

“These significant deals with AFC and Afreximbank will have a positive impact on the development of renewable energy projects in Africa, and on trade and investment between China and Africa,” says Milbank partner Shepard Liu.

Cexim president Shengjun Ren says the agreement is a concrete measure taken by the bank to promote high-quality cooperation under the Belt and Road Initiative, and implement the nine programmes under the Forum on China and Africa Cooperation framework.