Global Markets

AFC raises $1.16 billion syndicated loan to fund Africa’s infrastructure projects

Africa Finance Corporation (AFC), the premier provider of infrastructure solutions in Africa, has successfully concluded its largest-ever debt facility, a syndicated loan worth US$1.16 billion. This momentous achievement, celebrated at an event in Dubai, signifies AFC’s unwavering dedication to developing crucial infrastructure projects across the continent. By expanding its financial flexibility and broadening its investor base, AFC aims to enhance its impact and contribute to Africa’s economic growth and industrialization.

The participation of new lenders from the Middle East, Europe, and Asia in this landmark transaction highlights AFC’s appeal in global capital markets. Renowned international financial institutions such as First Abu Dhabi Bank PJSC, Mashreqbank PSC, MUFG Bank, and Standard Chartered served as Global Coordinators, while the Industrial and Commercial Bank of China (London Branch) acted as the China Coordinator. Abu Dhabi Commercial Bank PJSC, Emirates NBD Bank PJSC, Mizuho, and Sumitomo Mitsui Banking Corporation played the role of Initial Mandated Lead Arrangers and Bookrunners. Additionally, Bank of China and Société Générale S.A served as Initial Mandated Lead Arrangers.

Originally launched as a US$1 billion syndicated loan, the facility was upsized by 49% due to overwhelming demand, underscoring the global investor community’s confidence in AFC’s proven track record, creditworthiness, and ability to navigate the complex global economic landscape. The proceeds from this loan will be utilized to further AFC’s mission of delivering efficient and sustainable solutions to bridge Africa’s infrastructure gap, unlocking the continent’s immense potential and fostering prosperity for all Africans.

AFC’s President & CEO, Samaila Zubairu, highlighted the strong interest of the global loan market in Africa’s growth story through the successful syndication, marking it as AFC’s largest ever. This demonstrates the Corporation’s dedication to supporting infrastructure projects that promote local processing and value capture, ultimately driving African industrialization, increased export earnings, and job creation.

AFC’s role as a key partner for African and global stakeholders and investors underscores its commitment to fostering a prosperous future for Africa and its people. The participation of financial institutions like Société Générale, Bank Muscat, and Intesa Sanpolo Bank Luxembourg S.A. as first-time lenders in the syndicate further validates AFC’s reputation as one of the top investment-grade institutions in Africa.

With a solid A3 credit rating from Moody’s, AFC has successfully diversified its funding sources in recent years. In 2023, the Corporation secured a US$625 million syndicated loan, its second largest, with lenders primarily from the Middle East and Asia. Additionally, AFC signed a US$350 million long-term line of credit with the African Development Bank (AfDB) and a EUR50 million loan facility agreement with Cassa Depositi e Prestiti SpA (CDP), the Italian development finance institution, during COP28 in Dubai. Furthermore, AFC received a US$400 million loan from the Exim Bank of China.

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