Africa Finance Corp. Secures $1.16B Loan in Infrastructure Push
First Abu Dhabi Bank, Mashreqbank, MUFG Bank and Standard Chartered acted as global coordinators. Industrial and Commercial Bank of China was China coordinator.
DUBAI, United Arab Emirates— The Africa Finance Corporation announced the successful close of its largest ever debt facility Monday, a $1.16 billion syndicated loan attracting new lenders from the Middle East, Europe and Asia, writes Winston Mwale.
The three-year loan, which was oversubscribed by 49% after initially launching at $1 billion, underscores global investor confidence in AFC's ability to develop critical infrastructure projects across Africa.
First Abu Dhabi Bank, Mashreqbank, MUFG Bank and Standard Chartered acted as global coordinators. Industrial and Commercial Bank of China was China coordinator.
"The global loan market's overwhelming interest in Africa's growth story is evident in the large pool of lenders that supported this syndication," said AFC President and CEO Samaila Zubairu.
"This is a significant endorsement of our commitment to ensure that infrastructure projects support local processing and value capture."
The syndicated loan will provide financial flexibility for AFC to advance its mission closing Africa's infrastructure gap. Proceeds will go toward fast, sustainable solutions in areas like transport, energy, natural resources and telecommunications.
New lenders included Société Générale, Bank Muscat and Intesa Sanpaolo Bank Luxembourg, showcasing AFC's ability to build a global coalition confident in its strong fundamentals and A3 Moody's credit rating.
In recent years, AFC has made strides diversifying its funding through deals like a $625 million syndicated loan in 2023 and credit lines from the African Development Bank and Italy's Cassa Depositi e Prestiti.