Banji Fehintola - Afrikan Heroes

Africa Finance Corporation (AFC) Gets $625 million Syndicated Loan With New Lenders From Middle East and Asia

May 29, 2023

Banji Fehintola, Senior Director and Treasurer of AFC

As part of efforts aimed at further diversifying its debt profile, the Africa Finance Corporation, the leading infrastructure solutions provider on the continent, announces that it has secured a US$625 million syndicated loan with new lenders from the Middle East and Asia. Gulf Bank, National Bank of Ras Al-Khaimah, China CITIC Bank Corporation, Qatar National Bank, Doha Bank and Industrial Bank of Korea Limited joined the syndicate as first-time lenders to AFC, strengthening the Corporation’s coalition of investors and global capital market access.

This latest funding is a testament to the Corporation’s resilience and exceptional creditworthiness in a challenging macroeconomic environment of rising interest rates, tighter financial conditions, capital outflows, and a stronger US dollar. The transaction was upsized from an initially planned US$500 million following an oversubscription of 61%, reflective of the strong demand from investors.

“Our ability to tap global financial markets despite challenging macroeconomic conditions continues unabated, demonstrating investor confidence in AFC’s strong credit risk profile and broadening global appeal,” said Banji Fehintola, Senior Director and Treasurer of AFC. “The funds raised will support AFC in furthering its mission of fostering economic growth and rapid industrialisation across Africa, whilst ensuring optimal value addition for the continent’s vast resources.”

First Abu Dhabi Bank PJSC, FirstRand Bank Limited (London Branch), ICBC (London) Plc., Mashreqbank PSC (acted as agent), MUFG Bank, Ltd., Standard Chartered Bank, and SMBC Bank International Plc. acted as Mandated Lead Arrangers and Bookrunners on this three-year syndicated loan.

AFC’s footprint spans 40 member countries across Africa and a pipeline of projects that blend positive social and environmental impact with superior risk-adjusted returns. The Corporation recorded an outstanding performance in its latest financial year, with total assets growing 23% to US$10.5 billion and the Corporation realising its five-year growth target a year early. AFC also made over US$1.5 billion in net borrowings in FY2022, expanding bilateral relationships in the international loan market to diversify its funding sources.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Africa Finance Corporation Deepens Asia Funding with Korea Development Bank US$100 million Facility

November 18, 2022

Banji Fehintola, Senior Director & Treasurer of AFC

Africa Finance Corporation (AFC), the leading infrastructure solutions provider in Africa, today announces the successful closing of a 5-year US$100 million loan facility from the Korea Development Bank (KDB).

The credit from South Korea’s state-owned policy bank follows a recent US$389 Samurai loan facility from Japanese investors in October, as AFC leverages Asian capital markets. KDB acted as Mandated Lead Arranger in a US$400 million syndicated loan facility raised by AFC in 2021 to support post-pandemic recovery in Africa. This new bilateral loan facility from KDB will support mid-term liquidity as AFC works to deliver fast and sustainable solutions to close Africa’s infrastructure gap and unleash the continent’s prosperity.

“We are very proud to be partnering with AFC and assisting it in its mission across Africa, as well as executing on our strategy to grow across the region,” said Philip Smith, Director and Head of Africa and the Middle East for KDB. “This facility not only builds on the relationship between our organisations, it helps to facilitate economic relations between South Korea and Africa.”

The loan facility is the latest example of AFC’s funding diversification strategy and shows the evolution in the role South Korea can play in the economic development of Africa. AFC issued its first Korean-focused instrument in 2019 with a US$140 million Kimchi term loan facility, which was well received by the South Korean debt market. In recent years, Korea has continued to shift from an aid approach to favour trade and investment in Africa, pledging US$600 million in financing in 2021 under the Korea-Africa Energy Investment Framework (KAEIF).

Banji Fehintola, Senior Director & Treasurer of AFC, said: “We are pleased to have secured this loan facility from a highly rated finance institution such as the Korea Development Bank. Our success signifies Asia and, in particular, South Korea’s growing appetite for African investments and we at AFC are committed to continue being the bridge that connects investors to Africa. We welcome KDB’s commitment to its Africa strategy and look forward to a continued partnership with them and other global investors keen on playing a part in Africa’s transformation story.”