The African Export-Import Bank has agreed to provide a $10m revolving trade finance facility to Dorman Long Engineering Limited to facilitate the importation of steel pipes for threading.
A statement by the firm on Wednesday disclosed that under the terms of the agreement signed on the sidelines of the just-ended African Energy Week in South Africa, Dorman Long Engineering Limited would utilise the proceeds of the facility for the issuance of letters of credits and standby letters of credit to facilitate the importation of the steel pipes and their onward supply to international oil companies.
Structured with a tenure of three years, the statement said the transaction fell under Afreximbank’s Intra-African Engineering, Procurement and Construction Initiative, which sought 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.
Signing the agreement on behalf of Afreximbank, was the Head of Client Relations (Anglophone West Africa), Mr Peter Olowononi, while the Chairman of Dorman Long Engineering Limited, Dr Timi Austen-Peters, signed for Dorman Long Engineering Limited.
