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AFC and PTA Bank Trade Finance Facility Renewal

The Africa Finance Corporation (AFC) and PTA Bank have renewed the Agreement for AFC’s US$25 million Trade Finance Credit Line to the Eastern and Southern African Trade and Development Bank (PTA Bank). AFC and PTA Bank have, over the last two years, developed a strong business relationship. Apart from the direct Trade Finance Credit Line, AFC additionally has a Risk Participation Agreement with PTA Bank, under which both institutions are financing the importation of co-mingled oil products into Zambia for refining into refined petroleum products. AFC’s commitment to the Risk Participation arrangement is US$70 million, making a total of US$95 million in financing collaboration between AFC and PTA Bank

PTA Bank facility renewal signing, Nairobi, Kenya - L-R: (Seated)Andrew Alli, President & CEO Africa Finance Corporation and Admassu Tadasse President & CEO PTA Bank; (Standing) Mr. Alex Gitari, Finance Director, PTA Bank; Mr. Taiwo Adeniji, Director, AFC; Ms. Aliya Shariff, Vice-President, Investments, AFC, and Mr. Francis Namboya, Principal Finance Officer, PTA Bank.

About AFC -
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 is the Technical Adviser to the Central Bank of Nigeria (CBN) on the CBN’s USD2.0 billion Power and Aviation Intervention Fund (PAIF). 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 recently provided financing to a leading Independent Power Producer (IPP) in Nigeria.  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. AFC provided a USD 50 million debt  investment in Athi River Mining (Kenya) Limited (ARM), the second largest cement operator in Kenya to support  expansion initiatives across Eastern and Southern Africa including; development and construction of a lime plant in Tanzania, a cement plant in South Africa, and, expansion of ARM’s cement capacity in Kenya. The transaction marks AFC’s first bilateral investment in Kenya.  AFC also invested in the Bakwena toll road project in South Africa. Underscoring its interest in investing in PPPs/PFIs in its focal sectors across the African continent.