Africa Finance Corporation (AFC) today completed its maiden borrowing, a US$ 50 million bilateral loan facility with Standard Bank plc. This marks AFC’s initial step in fully leveraging its balance sheet to invest in and support the development of critical infrastructure in the power, natural resources, transport, heavy industry and telecommunications sectors.
AFC is an African-led international financial institution, established in 2007 whose mission is to improve African economies by proactively developing and financing infrastructure, industrial and financial assets. AFC is involved as an investor, developer and financier of various infrastructure projects. The maiden borrowing in the international loan markets, consolidates AFC’s fast developing track record as the benchmark institution for financing the development of infrastructure projects in Africa.
Standard Bank PLC, a leading African banking group, rooted in Africa for over 150 years with a footprint in key sub-Saharan and other emerging markets, was the sole arranger, lender and agent of the facility.
Commenting on AFC’s debut borrowing in the International Loan markets, Andrew Alli, CEO & President of AFC said “All financial institutions need to leverage their balance sheets in order to have access to the necessary liquidity to fund the assets they create. This bilateral facility with Standard Bank marks the launch of AFC’s international borrowing strategy. We are pleased that our maiden borrowing is with another African institution and that we expect to continue to work with closely, as it demonstrates the strengthening financial capacity of the continent and the close intra-African ties that are being developed. We expect to continue to develop our funding program by working with institutions such as Standard Bank, as well as by tapping the debt capital markets”
David McCaig, Global Head of Debt Products, Standard Bank Plc welcomed the successful closing of the loan facility and said “Standard Bank are immensely proud to be part of AFC’s evolving growth story across Africa and internationally. Standard Bank believes that this facility will serve as a solid foundation for all future borrowings of AFC and will assist in establishing the Corporation as one of the leading capital markets participants from Africa.”
AFC is an African-led international financial institution, established in 2007 whose mission is to improve African economies by proactively developing and financing infrastructure, industrial and financial assets. AFC is involved as an investor, developer and financier of various infrastructure projects, and is gaining recognition as the benchmark institution for financing the development of infrastructure projects in Africa.
AFC is the lead investor in the award winning Cabeolica project, a USD90 million, 26MW landmark renewable energy wind power project in Cape Verde. AFC co-financed five new Boeing 777-260LR aircraft for Ethiopian Airlines as part of its fleet modernization programme.
AFC is the Technical Adviser to the Central Bank of Nigeria (CBN) on the CBN’s USD2.0 billion Power and Aviation Intervention Fund. AFC is also the lead investor in Cenpower Generation Company Limited (Cenpower), which is implementing the USD450 million Kpone IPP project – a 340 megawatt combined cycle gas turbine power plant in Tema, Ghana. AFC is the lead investor in the Main One fibre optic cable project, enhancing West Africa’s connection to Europe and the rest of the world through faster and more technologically advanced broadband capacity. Underscoring its interest in investing in PPPs/PFIs in its focal sectors across the African continent, AFC also invested in the Bakwena toll road project in South Africa.