Steel Pipe Import: Afreximbank To Support Engineering Firm With $10m Facility

The African Export-Import Bank ( A f re x i m b a n k ) 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.

According to a statement yesterday by Communications Lead (SKOT Communications), Ms Semi Adeoluwa, Head, Client Relations (Anglophone West Africa), Mr. Peter Olowononi, signed the agreement on behalf of Afreximbank, while Chairman of Dorman Long Engineering Limited, Dr. Timi Austen-Peters, signed for Dorman Long Engineering Ltd.

Adeoluwa explained that under the terms of the agreement, Dorman Long Engineering Limited will 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.

She further said that 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.

She added that the facility would 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.

Acting Group Managing Director, Client Relations, Afreximbank, Mr. 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 Engineering Limited is better positioned to execute large infrastructure and EPC projects and contribute to addressing key energy security needs in Africa.” 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 Engineering 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.”