AfDB agrees $50m Risk Participation Agreement for Commerzbank AG

The African Development Bank (AfDB) approved a $50 million unfunded Risk Participation Agreement for Commerzbank. The agreement will leverage Commerzbank support to African issuing banks seeking to expand their trade finance operations. It will target key economic sectors such as agriculture and manufacturing. The Risk Participation Agreement will run for three years as a 50/50 risk sharing arrangement. It is expected that the facility will support about $700 million of trade in Africa over the period.