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African Development Bank Group becomes a shareholder in Africa Finance Corporation

Lagos, 13 November 2019: Africa Finance Corporation (“AFC”, or “the Corporation”), a leading infrastructure solutions provider in Africa, today announces that the African Development Bank Group (“AfDB”), Africa’s highest investment-grade rated (AAA) supranational finance institution, has invested US$50 million in the equity of AFC.

AfDB’s investment in AFC will enable both institutions to accelerate infrastructure development and delivery on the continent by deepening co-financing opportunities, joint implementation, knowledge transfer and capacity development for the benefit of Africa. The addition of AfDB as a shareholder and DFI member of AFC complements AFC’s strategy of addressing Africa’s infrastructure deficit with AfDB’s stated mission to help reduce poverty, improve living conditions for Africans and mobilize resources for the continent’s economic and social development.   

The equity investment in AFC further broadens AFC’s shareholder base, and follows recent equity investments in AFC from African Re-Insurance Corporation and the Republic of Ghana. As part of the equity investment, AfDB will have representation on the AFC Board of Directors.

Samaila Zubairu, President & CEO of AFC, commented on the completion of the equity investment by AfDB: “AFC welcomes AfDB as a shareholder and strategic partner, with whom we would continue our collaboration journey to address Africa’s Infrastructure deficit and challenging business environment. AFC’s mandate is a strategic fit for AfDB’s objective to integrate, energize and industrialise Afria.”

Dr. Akinwumi Adesina, President of AfDB also commented on the announcement: "AfDB shares AFC’s vision of developing Africa-led responses to the Continent’s socio-economic development. To date, we have already worked jointly to deliver transformational projects with tangible impact over the years.
 
“In becoming a shareholder, this development is therefore a natural evolution in our partnership, which in turn will result in delivering solutions to Africa's infrastructure challenges at a faster pace. These solutions will adopt the highest standards, generate value to stakeholders, and foster sustainable development and economic growth across the African continent.
 
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$5.07 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; out of its Board-approved US$3 Billion Global Medium-Term Note (MTN) Programme. 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$6.6 billion in projects within 30 countries across Africa.

About AfDB – www.afdb.org
The African Development Bank (AfDB) group is a regional multilateral development finance institution established to contribute to the economic development and social progress across Africa. Founded in 1963, and headquartered in Abidjan, Côte d’Ivoire, AfDB is today the highest-rated supranational finance institution in Africa. They have been profitable every year since inception and have a stable AAA outlook from four different credit rating agencies. Additionally, AfDB has investment grade shareholders with 41% of their shareholding held by non-regionals, and 28% by G -7 nations including institutions from the USA, Germany and Japan. The AfDB comprises three entities: the African Development Bank (ADB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF).
 

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