• Sunday, June 23, 2024
businessday logo

BusinessDay

Africa Finance Corporation secures $625m syndicated loan

Korean banks join Africa Finance Corporation’s Asian investor list

Africa Finance Corporation (AFC), an infrastructure solutions provider on the continent said it has secured a $625 million syndicated loan with new lenders from the Middle East and Asia.

The transaction was upsized from an initially planned $500 million following an oversubscription of 61 percent, reflective of the strong demand from investors.

Banji Fehintola, senior director and treasurer of AFC, said “the funds raised will support AFC in furthering its mission of fostering economic growth and rapid industrialisation across Africa, whilst ensuring optimal value addition for the continent’s vast resources.

“Our ability to tap global financial markets despite challenging macroeconomic conditions continues unabated, demonstrating investor confidence in AFC’s strong credit risk profile and broadening global appeal,” Fehintola said.

Read also: Reps to commence probe of Nigeria Air project, summon permanent secretary

In a move to further diversify its debt profile, AFC’s first-time lenders are Gulf Bank, National Bank of Ras Al-Khaimah, China CITIC Bank Corporation, Qatar National Bank, Doha Bank and Industrial Bank of Korea Limited who joined the syndicate to strengthen the corporation’s coalition of investors and global capital market access.

Consequently, First Abu Dhabi Bank PJSC, FirstRand Bank Limited (London Branch), ICBC (London) Plc., Mashreqbank PSC (acted as agent), MUFG Bank, Ltd., Standard Chartered Bank, and SMBC Bank International Plc acted as mandated lead arrangers and bookrunners on this three-year syndicated loan.

In its latest financial year, AFC recorded 23 percent total assets growth to $10.5 billion and the corporation realising its five-year growth target a year early.

The corporation also made over $1.5 billion in net borrowings in 2022, expanding bilateral relationships in the international loan market to diversify its funding sources.

AFC’s footprint spans 40 member countries across Africa and a pipeline of projects that blend positive social and environmental impact with superior risk-adjusted returns.