AFC Closes Largest Ever Debt Facility at $1.5bn

By Adedapo Adesanya

Africa Finance Corporation (AFC),  an infrastructure solutions provider in Africa, has successfully closed its largest-ever debt facility, a landmark $1.5 billion syndicated loan.

This transaction, a milestone in the corporation’s history, attracted a diverse consortium of new and returning lenders spanning the Middle East, Africa, Asia, and Europe.

Originally launched at $1.3 billion, the three-year facility, proceeds of which will be used for general corporate purposes, attracted strong demand, bringing in new lenders including Bank of Communications, Burgan Bank, Export Development Bank of Egypt, and Hua Nan Bank.

This underscores robust investor appetite for Africa’s infrastructure growth opportunities through strategic partnerships with highly reputable institutions like AFC.

This facility enhances AFC’s financial capacity and further broadens its network of strategic partners, reinforcing the corporation’s mission to catalyse infrastructure-driven economic growth and industrial development across Africa.

By leveraging its solid credit profile, AFC secured more favourable pricing compared to its $1.16 billion Syndicated Term Loan Facility which closed last year.

Demonstrating AFC’s deep connections with the international capital markets, the syndication was led by an exceptional group of global arrangers including Abu Dhabi Commercial Bank PJSC, Commerzbank AG and Standard Chartered Bank as Global Coordinators and Initial Mandated Lead Arrangers and Bookrunners. Bank of China Limited (London Branch), First Abu Dhabi Bank PJSC, Mashreqbank PSC, MUFG Bank, Ltd., FirstRand Bank Limited, acting through its Rand Merchant Bank division (London Branch), State Bank of India (DIFC Branch), the Standard Bank of South Africa Limited, Société Générale, and Sumitomo Mitsui Banking Corporation (London Branch) all served as Initial Mandated Lead Arrangers and Bookrunners.

Additionally, Standard Chartered Bank acted as documentation agent whilst First Abu Dhabi Bank PJSC acted as facility agent.

“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 Mr 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.”

AFC has further diversified its funding base, securing long-term financing from development finance institutions, bilateral lenders, and commercial banks.

The corporation recently secured an AED 937.50 million Sustainability-Linked Term Loan Facility, deepening its financial ties with the United Arab Emirates (UAE).