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AFC signs Master Cooperation Agreement with International Finance Corporation

Lagos, 18 October 2017: Africa Finance Corporation (AFC) has this month become the 30th  member of the Master Cooperation Agreement (MCA) at the World Bank’s Annual Meetings in Washington DC.
 
Created by the International Finance Corporation’s (IFC) in 2009, the MCA seeks to enhance cooperation among member development finance institutions (DFIs). Aside to AFC, other MCA signatories include the UK’s CDC Group, the Netherland’s FMO and Sweden’s Swedfund.abc.jpg
 
In addition to increased collaboration with other MCA signatories, AFC stands to benefit in several ways through this accession. This includes an increased deal flow and access to a robust pipeline of project opportunities, increased administrative efficiencies and deal processing, as well as AFC’s overall enhanced relationship with IFC itself.
 
Andrew Alli, President and Chief Executive Officer of AFC, commented “AFC has long believed in the efficacy of collaboration in accelerating infrastructure development. It is why we have done so on a number of occasions with sister organizations, including KFW, the German DFI, just last year to finance projects in our core sectors.
 
“In acceding to the MCA, we are demonstrating our commitment to establishing further collaboration with our peers that will ensure we close Africa’s infrastructure gap at an expedited rate.”
 
abc2.jpgJingdong Hua, Vice President and Treasurer of IFC, commented on the announcement: “The MCA was founded in the aftermath of the 2008 financial crisis to facilitate large-scale infrastructure projects and it has demonstrated significant capacity to deliver results for Africa
 
“We are therefore delighted to welcome AFC as a signatory to the MCA, and look forward to enhanced cooperation, both in terms of fundraising, as well as building a set of projects pipelines across AFC’s five sectors.”
 
The official signing ceremony took place on 13 October 2017, on the sidelines of the 2017 World Annual Meetings in Washington D.C., USA.
 
AFC is committed to proactively financing and managing the development of key infrastructure projects which will have a positive impact on the lives of Africans all over the continent. To date the Corporation has invested approximately US$ 4 billion in projects across 28 countries to date and in a wide range of sectors including power, telecommunications, transport and logistics, natural resources and heavy industries.
 
About AFC - www.africafc.org
 
AFC, an investment grade multilateral finance institution, was established in 2007 with an equity capital base of US$1 billion, to be the catalyst for private sector infrastructure investment across Africa.  With a current balance sheet size of approximately US$3.5 billion, AFC is the second
 
highest investment grade rated multilateral financial institution in Africa with an A3/P2 (Stable outlook) rating from Moody’s Investors Service. AFC successfully raised US$750 million in 2015 and US$500 million in 2017; out of its Board-approved US$3 Billion Global Medium Term Note (MTN) Programme. Both issuances were oversubscribed and attracted investors from Asia, Europe and the USA. 
 
AFC’s investment approach combines specialist industry expertise with a focus on financial and technical advisory, project structuring, project development and risk capital to address Africa’s infrastructure development needs and drive sustainable economic growth.  AFC invests in high quality infrastructure assets that provide essential services in the core infrastructure sectors of power, natural resources, heavy industry, transport, and telecommunications.
 
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About Master Corporation Agreement
           
The Master Cooperation Agreement was established by IFC in 2009 as a response to the global financial crisis which hit in 2008 and led to the retrenchment of financing from a number of European commercial banks into emerging markets. It became clear to the DFI community that a partnership to work together to fill the void that the commercial banks left would be needed. The MCA was created to foster greater cooperation among DFIs, increase efficiencies and streamline due diligence processes. The MCA was initially signed between IFC, DEG, FMO and Proparco (together known as “the original parties”) and subsequently acceded to by 26 other DFIs (“Acceding Parties”) to make a total of 29 currently. The MCA has generally been well received within the DFI community given that it is structured to create efficiencies through standardized documentation and deal processing.

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