African Bank home Loans

The NSGL is either a credit to companies in the general interest, without the need for a state guaranty from the hosting governments, or to companies in the general interest, provided they fulfil certain conditions of the RMC. In the case of non-governmental customers and the retail market, the credit instrument on offer is the Fixed Spread Loan or FSL.

From March 2016, the Fully Flexible Credit (FFL) will be the state-guaranteed credit instrument available to MMCs. The Enhanced Variable Spread Loan will be replaced by this one. This new FFL incorporates the current riskmanagement functions provided by the bank's riskmanagement products (RMPs) directly into the credit conditions.

In particular, for all or part of the loans paid out and in arrears, the FFL gives beneficiaries the possibility of carrying out certain credit transformations. In addition, the FFL now provides flexible foreign exchange translation where the borrower can fully or partially modify the credit currencies of unpaid and/or paid loans during the term of the loans.

This new FFL will also introduce a tire-based pricing structure and increase the maximal life and shelf life of existing products from the former FFL, from 20 years to 25 years and from 5 years to 8 years. As a result, entitled borrower can choose credit profile that meets their financing needs and credit risk capacity.

Overall, the FFL will offer greater scope for borrower adaptability to credit periods and to control foreign exchange and interest risk over the duration of their credit. As a result of the integration of the RMPs into the credit products, the International Swaps and Derivatives Association Master Agreement, which is a precondition for access to the Bank's own bankers' master agreements and the signature of which has so far proven difficult, will no longer be necessary for our qualified master MMCs.

Available to non-state insured and to all retail borrower customers, the Fixed Spread Loan or FSL is the lending instrument. Several FSL lending facilities are available from the Bank, which include line of credit facilities (LOCs), commercial loans, multiple and A/B syndicated loans and loans denominated in foreign currencies. FSL prices reflect the Bank's competitively priced AAA ratings, which are transferred to the borrower.

FSL offers borrower transparency and market-based prices to adjust exchange and interest rate levels to the needs of their projects. Loans from the Bank in domestic money will be provided under the FSL price scale with a transit mechanism for the loans to make sure that the total costs of the loans are fully cofinanced. Monetary denominations of foreign exchange are available in a variety of African languages.