AFC Mobilises $2bn From Global Lenders for African Infrastructure Projects

The Africa Finance Corporation (AFC) has raised $2 billion via a syndicated loan, with considerable participation from Asian and European banks seeking to capitalise on growing demand for infrastructure projects across the continent.

Barclays Bank, Commerzbank, First Abu Dhabi Bank PJSC, and FirstRand Bank led the debt facility. Other participating lenders include Export-Import Bank of India, Bank of Communications, Industrial and Commercial Bank of China, and Industrial Bank of Korea, among others.

Each region accounted for about 35 per cent of the creditors, according to a statement by AFC.

AFC chief executive, Mr Samaila Zubairu, said the money would enable more master planning around infrastructure and industrial planning for economies, regions and economic corridors across the continent.

According to Mr Zubairu, the lender is also in discussions to invest in a proposed oil refinery to be built by billionaire Aliko Dangote in East Africa.

The financer initially sought $1.6 billion via the facility but scaled it up to $2 billion amid strong demand from Asian financial institutions.

“In this round, we saw a lot more of Asian banks. We have banks from China, Hong Kong, and Korea. They are a lot more engaged,” he said.

Mr Zubairu said the loan underscored AFC’s strong track record, pointing to its financing for projects including Nigeria’s 650,000 barrels per day Dangote oil refinery and Africa’s largest copper smelter in the Democratic Republic of Congo.

“There’s a lot more confidence, a lot more partners,” Mr Zubairu said of those participating in the loan. “We are constantly demonstrating that Africa is executing. Africa is building.”

“The capital that we raise goes into African infrastructure build out, African industrialisation build up – essentially creating jobs for Africans,” Mr Zubairu said.

The AFC chief said the lender is also working to reform capital rules and create structures that will allow more African money to stay on the continent and be invested in crucial infrastructure projects.

AFC, founded in 2007, has assets surpassing $19 billion and counts 48 African countries as members.

In January, the infrastructure-focused multilateral lender secured an A rating from S&P. It has an A3 rating from Moody’s, an AAAspc rating from S&P Ratings (China) and an A+ rating from the Japan Credit Rating Agency.