Lagos based Africa Finance Corporation (AFC), announced on Monday it has raised $1.5 billion through an oversubscribed three-year syndicated loan facility.
The facility was initially targeting $1.3 billion but was scaled up following strong demand, according to the AFC.
The syndication attracted a diverse group of new and existing lenders from the Middle East, Africa, Asia, and Europe. New participants included Bank of Communications, Burgan Bank, the Export Development Bank of Egypt, and Hua Nan Bank.
The loan was arranged by Abu Dhabi Commercial Bank, Commerzbank AG, and Standard Chartered, who served as co-coordinators and mandated lead arrangers.
Banji Fehintola, a member of the AFC’s executive board, stated that “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.” The corporation also secured more favorable financial terms than its previous $1.16 billion syndicated facility closed last year.
The success of the fundraising reflects market confidence in the AFC’s financial strength, which holds A3 and A+ credit ratings from Moody’s and the Japan Credit Rating Agency (JCR), respectively.
The institution dedicates approximately 70% of its lending to the African private sector, applying risk-based differentiated interest rates. This strategy has helped the AFC maintain a low non-performing loan rate, which stood at 0.7% at the end of 2024, significantly below its target threshold of 3%.
The AFC’s loan portfolio reached $7.9 billion at the end of 2024, allocated across infrastructure and trade finance (58%), short-term loans to African banks (24%), and equity investments (18%). Its priority sectors are energy, transport and logistics, natural resources, telecommunications, and heavy industry.
The corporation’s 2024-2028 strategic plan aims to boost support for renewable energy, critical minerals essential for the energy transition, and the integration of regional supply chains.
Olivier de Souza
