South Korea’s Shinhan Bank and Hana Bank have signed an agreement with African Export-Import Bank (Afreximbank) to participate in a $1 billion syndicated loan arranged by the pan-African multilateral financial institution, the two lenders announced Thursday.

The collaborated participation comes after Shinhan Financial Group and Hana Financial Group signed a memorandum of understanding on May 25 to jointly promote projects that help enhance global competitiveness.

Afreximbank, a multilateral trade finance institution, has 51 of 54 African countries as members or shareholders. It operates trade promotion programs for central and commercial banks of member countries and supports related foreign currency liquidity. A syndicated loan is financing offered jointly by a group of lenders.

An unnamed official from Shinhan Bank said that the latest agreement is a result of swift evaluation and decision-making by the two lenders with high understanding of African syndication loan. The agreement will allow the two banks to enhance joint operations in the rapidly growing African financial market.

Shinhan Bank was invited to take part in the syndication loan after it led a similar loan contract for Afreximbank in September, 2018. It was acknowledged of its various international banking trade experience in Europe.

Hana Bank has built financial trade experience in the United States and Europe. It also participated in Afreximbank’s syndication loan in 2014.

By Pulse

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