TOKYO, 30 August 2019: Africa Finance Corporation (“AFC” or “the Corporation”), Africa’s leading investment grade infrastructure solutions provider, announces the close of general syndication of a minimum US$150,000,000 Dual Currency Samurai Term Loan Facility (the “Facility”) with MUFG Bank, Ltd. (“MUFG”) and Sumitomo Mitsui Banking Corporation (“SMBC”), acting as Mandated Lead Arranger and Bookrunner.
The Facility, which comprises two tranches, with both tranches (USD denominated Tranche A and JPY denominated Tranche B) carrying a tenor of 3 years each (bullet repayment), is AFC’s first Asian-currency denominated loan facility. It is an important step as the Corporation builds a broad coalition of investors to diversify its funds and allow institutions from around the globe to participate in Africa’s development.
The deal was very well received in the Japanese loan market leading to a significant over-subscription. The Facility will be upsized accordingly.
Proceeds from the Facility will be used for general corporate purposes in accordance with AFC’s Establishment Agreement and the Charter.
Samaila Zubairu, President and CEO of AFC, commented: “Since joining AFC, one of my main goals has been to build a broad coalition of international investors. Securing this loan facility brings us one step closer. The Japanese loan market’s overwhelming interest in the Facility, leading to its oversubscription, allows us to diversify our funding sources and supports our mandate of providing transformational solutions to Africa’s infrastructure deficit.
“Asia is key to Africa’s growth. Japan, in particular, is an important player and its guiding principles – quality growth, which focuses on inclusiveness, sustainability and resilience as well as human security, which focuses on capacity building – are completely aligned with AFC’s mission and vision.”
The Facility launched into general syndication on 23 July 2019. The signing of the loan agreement is scheduled for 2 September 2019.
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-led infrastructure investment across Africa. With a current balance sheet of approximately US$4.5 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$650 million in 2019, US$500 million in 2017 and US$750 million in 2015 through Eurobond issuances. All Eurobond issues 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. To date, the Corporation has invested over US$4.5 billion in projects within 29 countries across Africa.
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