The African Export-Import Bank has announced the signing of a seven-year $350m Term Loan Facility to provide financing to OCP Group of Morocco.
The bank made the announcement in a statement it issued in Cairo, Egypt on Monday, adding that the financing was to support the group’s expansion plans across Africa.
Prof. Benedict Oramah, the bank’s president, said the partnership was in fulfilment of its mandate of facilitating export development in the continent and promoting intra-African trade and investments.
Oramah was quoted as saying that the facility had symbolic value, as it marked the beginning of a productive and close relationship between Afreximbank and the OCP group.
He said, “We are delighted to announce this facility; as the first demonstration of the strong relationship the bank enjoys with Morocco.
“This is an important transaction which supports the development of Africa’s agricultural capacity.
“OCP Group’s products, which are tailored to the needs of African farmers, will generate broad and deep improvements to the continent’s ability to compete in international agricultural markets.”
The statement said OCP group ranked among the world’s largest phosphate producers, with a strong position across all five continents and exporting to more than 160 clients.
It added that over the last decade, the group had consolidated its position in many African countries and, as an African player, was committed to developing South-South cooperation.
It said it had also placed Africa at the heart of its growth plan to contribute to bolstering the continent’s agricultural ecosystem, by providing the continent with both the right quantities and qualities of customised fertiliser products.
NAN reported that Nigeria recently signed a $1.4bn agreement with OCP Group of Morocco to produce ammonia and diammonium phosphate in the gas industrialisation strategy.
The project is structured to commercialise Nigeria’s vast natural gas resources and satisfy Morocco’s demand for cost-competitive ammonia.
The agreements are designed to create a clear path for the second phase of the Presidential Fertiliser Initiative and the creation and operationalisation of a Multipurpose Industrial Platform in Nigeria.