Loan Secured for Abidjan Port Expansion
- Business & Finance
The African Export-Import Bank (Afreximbank) has arranged a EUR 200 million syndicated bridge financing facility for Cote d’Ivoire’s state-owned Port Autonome d’Abidjan (PAA) to enable the company expand facilities at the Abidjan Port.
According to the agreement signed by PAA and the participating banks in Cairo and Abidjan, Afreximbank and Société Générale Cote d’Ivoire will each provide 50 million Euros while Banque Atlantique, through its group across Africa, will participate in an amount of 100 million Euros. Banque Atlantique will also serve as the local agent bank for the transaction.
Information made available by the banks shows that the funds would be used by PAA to finance advance payment and related costs for the expansion of the Abidjan Port, including the enlargement and deepening of Vridi Canal as well as the construction of Container Terminal 2 and a RoRo terminal by China Harbour Engineering Company Ltd.
“By increasing the port’s handling capacity for containers, this project should enhance the position of the Abidjan Port as the gateway that connects the nearby hinterland West Africa countries to international markets,” said Jean-Louis Ekra, President of Afreximbank, after signing the agreement on behalf of the Bank.
PAA, which began operations in 1951 following its creation in 1950, is responsible for the management of the Port of Abidjan. One of Africa’s busiest ports in terms of volume, the Port of Abidjan serves as a major international trans-shipment and transit traffic hub through which 70 per cent of the foreign trade of hinterland countries (Burkina Faso, Mali, etc.) passes.
Press Release, July 14, 2014