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AFC and KfW IPEX Bank conclude US$300 million Infrastructure Financing Agreement

Africa Finance Corporation (AFC) and Germany’s International project and export finance bank – KfW IPEX-Bank, have signed a USD 300 million Framework financing agreement. The facility will be accessible to infrastructure projects in Africa developed by AFC, by providing long-term financing of European equipment and services imported for such projects. The Framework financing agreement is designed to support German and European exporters and help address Africa’s infrastructure development needs. Projects financed under the Agreement will be covered by guarantees from European Export Credit Agencies (ECAs).

Within the KfW Group, KfW IPEX-Bank is responsible for international project and export finance. Its function of providing financing to boost the German and European economy is derived from the legal mandate assigned to KfW. It offers medium- and long-term financing to support key export industries, to develop economic and social infrastructure and to fund environmental and climate protection projects. KfW IPEX-Bank operates as a legally independent subsidiary and plays a major role in fulfilling KfW’s promotional mission. It is represented in the most important economic and financial centres across the globe.

AFC is an African private sector led multilateral development finance institution, established in 2007 to invest in Infrastructure across Africa. The current member countries are Ghana, Nigeria, Guinea-Bissau, Guinea, Liberia, Sierra-Leone, The Gambia, Chad and Cape Verde. The Corporation is headquartered in Lagos, Nigeria. AFC is involved as an investor, developer and financier of various infrastructure projects in Africa with product offerings including debt, equity, and mezzanine instruments within the project finance, trade and structured finance and equity investment space. In addition, AFC offers clients, financial advisory, project development and technical advisory services across five major focus sectors namely, Power, Natural Resources (Oil, Gas and Mining), Heavy Industries, Transport Infrastructure and Telecommunication Infrastructure.

Notes to Editors

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About KfW IPEX-Bank www.kfw-ipex-bank.de

For more information contact:

Banji Fehintola, Senior Vice President & Treasurer
 Tel: + 234 1 279 9600 Email: banji.fehintola@africafc.org

Lucy Savage, Vice President, Corporate Communications
 Tel: + 234 1 279 9600 Email: lucy.s avage@africafc.org

About the AFC
• AFC is an African-led multilateral development financial institution, established in 2007, with a mission 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’s current authorized share capital is USD2.0 billion with shareholders’ funds of USD1.24 billion and a 2013 funding programme of USD700 million.

• AFC is the second highest investment grade-rated multilateral financial institution on the African continent, with an A3 (long term) /P2 (short term) foreign currency debt rating by Moody’s Investors Service.

AFC’s projects:

• Cenpower Generation Company Limited (‘Cenpower’) is a special purpose vehicle that is developing a 350MW, light crude oil and gas fired, combined cycle power plant in the municipality of Kpone within the Tema industrial zone, near Accra, Ghana (‘the Kpone IPP’). The Kpone IPP is one of the largest infrastructure projects currently under development in Sub-Saharan Africa. A well-developed project with a very robust commercial structure, Kpone enjoys the strong support of the Ghanaian Government. The key commercial agreements, including the Power Purchase Agreement and the Government Consent and Support Agreement, have been approved by Cabinet and Parliament.

• 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 a partner with Vigeo Holdings Limited and Tata Power Delhi Distribution Limited for the acquisition of power distribution assets, and a lead financier in the acquisitions of the Kainji and Ughelli power generation plants in the current Nigerian Government power sector privatisation round.

• Additionally in Nigeria, AFC made investments to support marginal field operators in the up and mid-stream oil and gas sector companies such as Neconde, FHN and Seven Energy.

• 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 USD50 million convertible debt investment in ARM Cement 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 and expansion of ARM’s cement capacity in Kenya. The transaction marked AFC’s first bilateral investment in Kenya.

• AFC provided financing for Ethiopian airlines fleet expansion in the acquisition of Africa’s first Boeing 777 airline.

• AFC also invested in the Bakwena toll road project in South Africa, and in the EURO 270 million Konan Bedie Toll Bridge in Côte d’Ivoire; the signature Transport PPP project in Francophone Africa, underscoring its interest in investing in PPPs/PFIs in its focal sectors across the African continent.

• AFC launched a landmark USD15 million project development facility with the Dutch Development Bank FMO in January 2013, to fund early-stage equity investments in projects under development pre-financial close, in the infrastructure sector across sub-Saharan Africa.

• The AFC has established partnerships with national, regional and international organizations and with sponsors that are active in the infrastructure space in Africa

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