Africa Finance Corporation secures $1.16 billion in its largest-ever syndicated loan to meet Africa's Infrastructure financing needs.
Africa Finance Corporation(AFC), the private sector-led infrastructure investment solution provider and multilateral development financial institution, has secured a record $1.16 billion in its largest-ever syndicated loan.
Why is this important: According to the African Development Bank, Africa has an infrastructure financing gap of $108 billion needed to achieve essential infrastructure development, with Chinese and Western countries playing a role in meeting these funding needs. Multilateral development financial institutions like the Africa Finance Corporation provide a modern playbook that reflects the distinct and attractive nature of Africa's infrastructure investment opportunities across social, utilities, energy, digital and transportation.
Leading investors and global financial firms in the oversubscribed funding round include a group of Global Coordinators: First Abu Dhabi Bank PJSC, Mashreqbank PSC, MUFG Bank, and Standard Chartered. The Industrial and Commercial Bank of China (London Branch) is acting as the China Coordinator. Abu Dhabi Commercial Bank PJSC, Emirates NBD Bank PJSC, Mizuho, and Sumitomo Mitsui Banking Corporation acted as Initial Mandated Lead Arrangers and Bookrunners. Additionally, Bank of China and Société Générale S.A acted as Initial Mandated Lead Arrangers.
The bottom line: In Africa, infrastructure investment activities have grown as the role of firms like the AFC becomes more prominent in helping African governments achieve the needed modern infrastructure, from improved digital structures and frameworks to energy transition support that stimulates the economy with positive and enduring societal impacts.
