Pan-African development financial institution, Africa Finance Corps (AFC) has raised $400 million in funds as its fundraising attracted new lenders from the Middle East and South Korea.
The initial target was $300 million, which was aimed at bolstering its balance sheet, however, it was increased to $400 million as the director of the AFC stated that the corporation may borrow as much as $3 billion this year.
Recall, that the Africa Finance Corporation (AFC) created an independent asset management arm, AFC Capital Partners in September 2021, with a plan to raise a sum of $500 million in one year and $2 billion over the next three years.
According to Banji Fehintola, AFC’s senior director and treasurer, the funding would be diversified to achieve various objectives as the continent needs a lot of resources to recover from the effects of the COVID-19 pandemic. He also stated that some of the money received would be used to settle loans and liabilities.
The loan was secured from a group of 12 banks including Dubai’s Mashreqbank PSC, Korea Development Bank, Absa Group Ltd. of South Africa, Standard Chartered Plc, Bank of China Ltd. In addition to funding, the loan includes a Kimchi Bond, a security sold in foreign currency in the South Korean market.
What you should know about African Finance Corps
African Finance Corp was founded in 2007, with the aim of facilitating infrastructural development all over the continent. It is an independent, majority private-sector owned, multilateral African financial institution providing project structuring expertise and risk capital to address Africa’s pressing infrastructure, capacity and economic development needs.
The corporation currently has 33 African member countries and has disbursed over US$8.7 billion across 35 countries in Africa and in various sectors including Power, Transport, Telecommunications, Heavy Industries and Natural Resources sectors.
Some of its notable works in the continent include building a 385km Bakwena Toll Road in South Africa, facilitating the building Carbon Holding petrochemicals facility in Egypt, and investing in the Gabon Special Economic Zone Company (GSEZ), now called ARISE Ports & Logistics.
The AFC office is located at Ikoyi, Lagos Nigeria.