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Africa Finance Corporation Signs USD200 million African Development Bank Line of Credit for Infrastructure Development

 Africa Finance Corporation (AFC) today completed a landmark commercial borrowing, a US$ 200 million ten year line of credit facility granted by the African Development Bank (AfDB). AFC has taken this critical step in diversifying its long term funding sources, leverage its balance sheet, and thereby increase its capacity to support the development of vital infrastructure in the power, natural resources, transport, heavy industry and telecommunications sectors in Africa.

AFC is an African-led multilateral 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. Currently in its fifth year of operation, AFC is playing a major role in bridging the Continent’s critical infrastructure investment gap. It has not only emerged as a benchmark financier of infrastructure projects across Africa, but also as a key partner in attracting new financing to Africa.

AfDB, a leading multilateral development bank, established 48 years ago with a footprint in key emerging markets, is the sole arranger, lender and agent of the facility.
At the signing ceremony in Lagos, Dr. Ousmane Dore, AfDB Resident Representative in Nigeria remarked” The scale and magnitude of the infrastructure deficit African economies face can only be effectively addressed when institutions coalesce in partnership, to finance indigenous long term investment”. Going further, he stated that the AfDB is pleased about the emerging strategic relationship between it and the AFC, being two African institutions committed to improving infrastructure services on the continent, and expressed AfDB’s commitment to providing assistance to AFC as appropriate in carrying out its mandate across Africa.</p>
Commenting on AFC’s long term funding strategy, Andrew Alli, President &amp; CEO of AFC said “Financial institutions need to leverage their balance sheets in order to have access to the necessary liquidity to fund the assets they create. This facility with AfDB represents a key part of AFC’s international funding strategy. We are delighted that this long term borrowing is from another African institution with which AFC collaborates closely and is developing a strategic partnership. The transaction demonstrates the increasing financial capacity of the continent, and the ability of intra African partnerships to drive economic development and help transform Africa
About AFC - www.africafc.org
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 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 convertible 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 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 the EURO 270 million Konan Bedie Toll bridge in Côte d’Ivoire, the landmark PPP project in Francophone Africa, underscoring its interest in investing in PPPs/PFIs in its focal sectors across the African continent.
 

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