Africa Finance Corporation raises its largest credit facility, a $1.16 billion syndicated loan

by MMC
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Africa Finance Corporation has raised its largest ever debt facility, a $1.16 billion 3-year syndicated loan. The sum was raised in a financing round involving lenders from the Middle East, Europe and Asia.

Leading global financial institutions including First Abu Dhabi Bank PJSC, Mashreqbank PSC, MUFG Bank and Standard Chartered led the syndication as global coordinators. The Industrial and Commercial Bank of China (London Branch) acted as coordinator for China.

Other participants in the syndicate were Société Générale, Banque Muscat and Intesa Sanpolo Bank Luxembourg SA, which joined the syndicate as first-time lenders. This milestone was celebrated at an event in Dubai.

Initially launched at $1 billion, the three-year syndicated loan was oversubscribed by 49%, leading it to be increased to $1.16 billion.

Speaking at the event, AFC President Samaila Zubairu said:

News continues after this announcement

News continues after this announcement

  • “The significant interest of the global lending market in Africa’s growth is evident in the large number of lenders who have supported this syndication, making it AFC’s largest ever.

He continued,

  • “This is a significant confirmation of our commitment to ensuring that infrastructure projects support local transformation and value capture, thereby providing much-needed impetus to Africa’s industrialization, upgrading export revenues and job creation. »

AFC Credit History

Africa Finance Corporation is currently rated A3 for long-term issuers and P-2 for short-term issuers by Moody’s, and the organization has actively diversified its funding sources.

In 2023, the company secured a $625 million syndicated loan from lenders in the Middle East and Asia, its second largest credit facility. In addition, the group obtained a long-term credit line of 350 million dollars from the African Development Bank (AfDB) and a loan facility agreement of 50 million euros with the Italian financial institution of development, Cassa Depositi e Prestiti SpA (CDP). Both agreements were finalized at COP28 in Dubai. Additionally, the Company received a $400 million loan from Exim Bank of China during the year.

In 2021, AFC issued a $750 million 7-year Eurobond with a yield of 2.99%, the company also received a $100 million debt facility from India Exim Bank, as well as a $250 million loan from the U.S. Internal Development Finance Corporation.

What you should know

  • AFC was founded in 2007 and since its inception, the company has been at the forefront of pragmatic infrastructure investments across Africa, with a focus on sectors such as energy, natural resources , industry, transport and telecommunications. The AFC has 43 member countries and has investments totaling approximately $13 billion across Africa since its inception.

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