Critical support to banks during the pandemic: ATI ensures financing continues to flow - African Trade Insurance Agency

Critical support to banks during the pandemic: ATI ensures financing continues to flow

ATI, in partnership with both regional development finance institutions (DFIs) and international banks, has continued to provide support to local banks since the economic impacts of COVID-19 began in March. By so doing, ATI helps ensure that foreign currency liquidity continues to be available to financial institutions in Africa.

During this period, ATI has covered bank transactions valued at over US$1.5 billion across 11 countries in Africa.

Nigeria, ATI’s newest member country, has benefited from ATI-backed transactions of financial institutions valued at over US$400 million.

In one transaction, ATI insured a part of a DFI’s US$300 million Letter of Credit (LC) Confirmation Facility. The facility was created to provide African banks with additional liquidity in the wake of the pandemic. Under the program, the DFI acts as the guarantor or confirming bank to the African issuing banks.

In another transaction, ATI, together with a panel of global insurers, covered a multinational lender for a US$95 million portion of a larger US$750 million term loan facility to another Tier-1 Nigerian bank.

“These deals are examples of how ATI is working together with its partners to provide practical solutions to a key sector during the pandemic. In addition to Nigeria, we have also supported financial institutions in Benin, Burkina Faso, Egypt, Ethiopia, Ghana, Mali, Rwanda, Tanzania, Togo and Uganda with more expected in the coming months.”  Noted Benjamin Mugisha, ATI’s Chief Underwriting Officer.

Related Articles

Retooling to better support Africa

Read More
About ATI
Nigeria prepares to ‘Bounce Back’ post COVID
COVID-19 in Africa – Dr. Robert Besseling, EXX Africa
Helping businesses navigate risks in the new COVID-19 landscape

Insurance enquiry

Enquire here

Subscribe to our newsletter

Subscribe