Africa Finance Corporation Secures Record-Breaking $1.16 Billion Syndicated Loan, Marking its Largest Debt Facility Yet

Africa Finance Corporation Secures Record-Breaking $1.16 Billion Syndicated Loan, Marking its Largest Debt Facility Yet

Africa Finance Corporation (AFC) has successfully raised its largest-ever debt facility, securing a substantial 3-year syndicated loan worth $1.16 billion. The financing round attracted participation from lenders spanning the Middle East, Europe, and Asia, indicating significant global interest in Africa’s growth prospects.

Key global financial institutions such as First Abu Dhabi Bank PJSC, Mashreqbank PSC, MUFG Bank, and Standard Chartered led the syndication as Global Coordinators, with the Industrial and Commercial Bank of China (London Branch) acting as the China Coordinator. Additionally, first-time lenders including Société Générale, Bank Muscat, and Intesa Sanpolo Bank Luxembourg S.A. joined the syndicate. The milestone achievement was commemorated at an event held in Dubai.

Originally launched at $1 billion, the syndicated loan experienced a remarkable oversubscription of 49%, prompting an increase to $1.16 billion to accommodate the overwhelming demand.

Speaking at the celebratory event, AFC’s President, Samaila Zubairu, highlighted the significance of the global loan market’s keen interest in Africa’s growth narrative. He emphasized AFC’s commitment to leveraging infrastructure projects to drive local processing, value capture, industrialization, enhanced export earnings, and job creation across the continent.

AFC boasts an impressive credit history, holding A3 long-term issuer and P-2 short-term issuer ratings from Moody’s. The organization has been actively diversifying its funding sources, evident from various financing agreements secured in recent years.

In 2023, AFC secured a $625 million syndicated loan from Middle Eastern and Asian lenders, its second-largest debt facility. Additionally, the corporation finalized a $350 million long-term line of credit with the African Development Bank (AfDB) and a EUR50 million loan facility agreement with Cassa Depositi e Prestiti SpA (CDP) during COP28 in Dubai. Moreover, AFC received a $400 million loan from the Exim Bank of China during the same year.

In 2021, AFC issued a $750 million 7-year Eurobond and received a $100 million debt facility from India Exim Bank, along with a $250 million loan from the US International Development Finance Corporation.

Founded in 2007, AFC has been instrumental in driving pragmatic infrastructure investments across Africa, focusing on sectors such as power, natural resources, industry, transport, and telecommunications. With 43 member countries and investments totaling approximately $13 billion across the continent, AFC continues to play a pivotal role in advancing Africa’s development agenda.

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