In a move to further diversify its debt profile, infrastructure solutions provider the Africa Finance Corporation (AFC) has secured a $625-million syndicated loan with new lenders from the Middle East and Asia.
Gulf Bank, the National Bank of Ras Al-Khaimah, China CITIC Bank, Qatar National Bank, Doha Bank and the Industrial Bank of Korea have joined the syndicate as first-time lenders to AFC, strengthening its coalition of investors and global capital market access.
“This latest funding is a testament to the corporation’s resilience and exceptional creditworthiness in a challenging macroeconomic environment of rising interest rates, tighter financial conditions, capital outflows and a stronger dollar,” the AFC outlines.
The transaction was upsized from an initially planned $500-million following an oversubscription of 61%, which it says reflects strong demand from investors.
“Our ability to tap global financial markets despite challenging macroeconomic conditions continues unabated, demonstrating investor confidence in the AFC’s strong credit risk profile and broadening global appeal.
“The funds raised will support the AFC in furthering its mission of fostering economic growth and rapid industrialisation across Africa, while ensuring optimal value addition for the continent’s vast resources,” says AFC senior director and treasurer Banji Fehintola.
First Abu Dhabi Bank, FirstRand Bank (London Branch), ICBC (London), Mashreqbank (acted as agent), MUFG Bank, Standard Chartered Bank, and SMBC Bank International acted as mandated lead arrangers and bookrunners on this three-year syndicated loan.