Africa Finance Corporation (AFC) Africa’s leading investment grade infrastructure solutions provider says it has closed a deal for one hundred and fifty million dollars loan.
The Facility, which comprises two tranches, (USD denominated Tranche A and JPY denominated Tranche B) carry a tenor of 3 years each and is AFC’s first Asian-currency denominated loan facility.
In a statement, AFC described the deal as “an important step as the Corporation builds a broad coalition of investors to diversify its funds and allow institutions from around the globe to participate in Africa’s development.
“The deal was very well received in the Japanese loan market leading to a significant over-subscription. The Facility will be upsized accordingly.”
Proceeds from the Facility will be used for general corporate purposes in accordance with AFC’s Establishment Agreement and the Charter.
Samaila Zubairu, President and CEO of AFC said “since joining AFC, one of my main goals has been to build a broad coalition of international investors. Securing this loan facility brings us one step closer. The Japanese loan market’s overwhelming interest in the Facility, leading to its oversubscription, allows us to diversify our funding sources and supports our mandate of providing transformational solutions to Africa’s infrastructure deficit.
“Asia is key to Africa’s growth. Japan, in particular, is an important player and its guiding principles – quality growth, which focuses on inclusiveness, sustainability and resilience as well as human security, which focuses on capacity building – are completely aligned with AFC’s mission and vision.”
The signing of the loan agreement is scheduled for 2 September 2019.
