Africa Finance Corporation has raised its largest ever debt facility, a 3-year $1.16 billion syndicated loan. The sum was raised in a financing round which saw participation from lenders across the Middle East, Europe and Asia.
Leading global financial institutions, including First Abu Dhabi Bank PJSC, Mashreqbank PSC, MUFG Bank, and Standard Chartered, spearheaded the syndication as Global Coordinators. While the Industrial and Commercial Bank of China (London Branch) served as the China Coordinator.
Other participants in the syndicate were Société Générale, Bank Muscat and Intesa Sanpolo Bank Luxembourg S.A. who joined as first-time lenders. The milestone was celebrated at an event held in Dubai.
Originally launched at $1 billion, the three-year syndicated loan witnessed an oversubscription of 49%, thus causing it to be increased to $1.16 billion.
Speaking at the event, AFC’s President, Samaila Zubairu noted,
- “The global loan market’s overwhelming interest in Africa’s growth story is evident in the large pool of lenders that supported this syndication, making it AFC’s largest ever.”
He continued,
- “This is a significant endorsement of our commitment to ensure that infrastructure projects support local processing and value capture, thereby providing the much-needed impetus to African industrialisation, enhanced export earnings and job creation.”
AFC’s Credit History
Africa Finance Corporation currently has A3 long-term issuer and P-2 short-term issuer ratings from Moody’s, and the organization has been actively diversifying its funding sources.
In 2023, the corporation secured a $625 million syndicated loan from lenders in the Middle East and Asia, its second-largest debt facility. In addition, the group obtained a $350 million long-term line of credit from the African Development Bank (AfDB) and a EUR50 million loan facility agreement with the Italian development finance institution, Cassa Depositi e Prestiti SpA (CDP). Both agreements were finalized during COP28 in Dubai. Furthermore, the Corporation received a $400 million loan from the Exim Bank of China during the year.
In 2021, AFC issued a $750 million 7-year Eurobond at a yield of 2.99%, the corporation also received a $100 million debt facility from India Exim Bank, as well as a $250 million loan from the US Internal Development Finance Corporation.
What you should know
- AFC was founded in 2007, and since its establishment, the corporation has been at the forefront of driving pragmatic infrastructure investments across Africa, with a focus on sectors such as power, natural resources, industry, transport, and telecommunications. AFC has 43 member countries and boasts investments totalling about $13 billion across Africa since its establishment.
