Africa Finance Corporation secures term loan

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Africa Finance Corporation (AFC) has signed a US$200mn three-year term loan facility, to be used for general corporate purposes, including facilitating trade.

Mandated lead arrangers and bookrunners on the facility were First Abu Dhabi Bank, Industrial and Commercial Bank of China, Rand Merchant Bank and Mitsubishi UFJ Financial Group. KfW Ipex-Bank joined as arranger.

Norton Rose Fulbright and Jackson Etti & Edu acted as lenders’ counsel, with White & Case as borrower’s counsel.

According to Banji Fehintola, director and head of treasury and financial institutions at AFC, the facility will support the execution of the corporation’s infrastructure development mandate and provide it with the necessary capital resources required to continue bridging Africa’s infrastructure deficit and facilitating international trade on the continent.

“The successful closure of this facility, which was oversubscribed, attests to AFC’s strong credit profile and robust governance procedures, making AFC very attractive to global lenders and investors,” says Fehintola.

To date, AFC has invested approximately US$4bn in infrastructure projects, including power, transport, and telecommunications, within 28 countries across North, East, West and Southern Africa.

With a current balance sheet size of approximately US$3.5bn, AFC is the second-highest investment-grade-rated multilateral financial institution in Africa with an A3/P2 (stable outlook) rating from Moody’s.