NBM secures landmark $100m financing facility
National Bank of Malawi plc and the Egyptian-based African Export-Import Bank (Afreximbank) have signed a landmark $100 million (about K175 billion) Trade Finance Facilitation Facility (Aftraf) agreement.
The deal, set to boost trade financing in the country, also represents the largest Aftraf facility ever to be extended by Afreximbank to a Malawi financial institution.
According to Afreximbank, the $100 million agreement will enhance and maximise the capacity of Malawi Stock Exchange-listed NBM plc, the country’s largest bank by assets, to finance trade transactions in the manufacturing, energy and agriculture sectors.
The facility will also allow NBM plc to issue letters of credit confirmed by Afreximbank, a move that will address the difficulty posed by the shortage of confirming banks lines.
