Africa Finance Corporation secures US$625mln syndicated loan facility

THE Africa Finance Corporation, a leading infrastructure solutions provider on the continent, has secured a US$625 million syndicated loan with new lenders from the Middle East and Asia.

Joining the syndicate for the first time are; the Gulf Bank, National Bank of Ras Al-Khaimah, China CITIC Bank Corporation, Qatar National Bank, Doha Bank and Industrial Bank of Korea.

The move not only strengthens the corporation’s coalition of investors and global capital market access, but is expected to diversify its credit profile.

The latest funding is a testament to the Corporation’s resilience and exceptional creditworthiness in a challenging macro-economic environment of rising interest rates, tighter financial conditions, capital outflows, and a stronger US dollar, said the AFC in a press statement.

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

“Our ability to tap global financial markets despite challenging macro-economic conditions continues unabated, demonstrating investor confidence in AFC’s strong credit risk profile and broadening global appeal,” Banji Fehintola, senior director and treasurer of AFC was quoted as saying.

“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.”

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. The Corporation recorded an outstanding performance in its latest financial year, with total assets growing 23 percent to US$10,5 billion and realising its five-year growth target a year early.

AFC also made over US$1,5 billion in net borrowings in FY2022, expanding bilateral-chronicle