The Africa Finance Corporation (AFC), the continent’s leading infrastructure solutions provider, has announced on Monday the successful closure of its largest-ever debt facility, a landmark US$1.5 billion syndicated loan. The facility, originally launched at US$1.3 billion, was significantly oversubscribed, underscoring robust international confidence in both the AFC and Africa’s infrastructure growth potential.
According to a statement from the corporation the three-year facility attracted a diverse consortium of new and returning lenders spanning the Middle East, Africa, Asia, and Europe. Proceeds from the loan will be used for general corporate purposes, directly enhancing the AFC’s capacity to finance critical infrastructure projects across the continent.
The strong demand for the loan facility brought in major new lenders, including Bank of Communications, Burgan Bank, Export Development Bank of Egypt, and Hua Nan Bank. This diverse participation highlights the growing investor appetite for strategic partnerships with highly reputable institutions like the AFC to tap into Africa’s burgeoning infrastructure market.
“This landmark transaction reinforces AFC’s standing as a trusted institution in the global capital markets and demonstrates our ability to mobilise capital at scale for Africa,” said Banji Fehintola, Executive Board Member and Head of Financial Services of AFC.
“It strengthens our role in bridging Africa’s infrastructure needs with global capital and accelerates our mission to drive rapid industrialisation and unlock the continent’s full economic potential.” He added.
AFC leveraged its solid credit profile to secure more favorable pricing for this facility compared to its US$1.16 billion Syndicated Term Loan Facility which closed last year. The successful syndication not only boosts the Corporation’s financial firepower but also further broadens its global network of strategic partners.
According to the statement the transaction was led by an exceptional group of global arrangers. Abu Dhabi Commercial Bank PJSC, Commerzbank AG, and Standard Chartered Bank served as Global Coordinators and Initial Mandated Lead Arrangers and Bookrunners.
Other Initial Mandated Lead Arrangers and Bookrunners included Bank of China Limited (London Branch), First Abu Dhabi Bank PJSC, Mashreqbank PSC, MUFG Bank, Ltd., FirstRand Bank Limited (Rand Merchant Bank division), State Bank of India (DIFC Branch), The Standard Bank of South Africa Limited, Société Générale, and Sumitomo Mitsui Banking Corporation (London Branch). Standard Chartered Bank acted as documentation agent, while First Abu Dhabi Bank PJSC served as the facility agent.
This major financial milestone reinforces the AFC’s mission to be a catalyst for infrastructure-driven economic growth and industrial development across Africa. The Corporation has also recently diversified its funding base, securing long-term financing from development finance institutions, bilateral lenders, and commercial banks, including an AED 937.50 million ($255.28 million) Sustainability-Linked Term Loan Facility that deepens its financial ties with the UAE.
