The African Export-Import Bank (Afreximbank) has agreed to provide a $10 million revolving trade finance facility to Dorman Long Engineering Limited to facilitate the importation of steel pipes for threading.
Under the terms of the agreement signed on the sidelines of the just-ended African Energy Week in Cape Town, South Africa, Dorman Long will utilise the proceeds of the facility for the issuance of letters of credit and standby letters of credit to facilitate the importation of the steel pipes and their onward supply to international oil companies (IoC).
Structured with a tenor of three years, the transaction falls under Afreximbank’s Intra-African Engineering, Procurement and Construction (EPC) Initiative, which seeks to build up the technical and financial capacity of African EPCs to win large infrastructure and EPC projects on the continent.
The facility will also enable Dorman Long Engineering Limited to provide services to clients in other African countries, helping to overcome some of the barriers limiting Africa’s share of global export services, a statement by the company said.
Signing the agreement on behalf of Afreximbank, was the Head of Client Relations (Anglophone West Africa), Peter Olowononi, while the Chairman of Dorman Long, Dr. Timi Austen-Peters, signed for the engineering company.
Acting Group Managing Director, Client Relations, Afreximbank, Eric Intong Monchu, said: “Afreximbank’s commitment to supporting African businesses to increase their participation in large infrastructure and EPC projects is driven by the need to enhance the execution capacity and local value addition of businesses in the oil and gas sector. With this facility, Dorman Long is better positioned to execute large infrastructure and EPC projects and contribute to addressing key energy security needs in Africa.”
Chairman of Dorman Long, Dr Timi Austen-Peters, said: “We are grateful to Afreximbank for their continued support and commitment to African businesses. This facility aligns perfectly with our growth strategy at Dorman Long and will enable us to deliver innovative solutions to our clients as we evolve. We are even more ready to partner in the development of Nigeria as we plan to export our skills and services, to drive economic growth and create jobs.”
