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AFC secures US$100 million OPIC – JP Morgan loan

The Africa Finance Corporation (AFC) has secured a US$ 100 million long term loan facility from the United States of America (US) Government’s development finance institution, Overseas Private Investment Corporation (OPIC), JP Morgan’s Corporate & Investment Bank. US$75 million of the facility amount will be provided by OPIC while the remaining US$25 million will be provided by JP Morgan.  The facility is intended to further deepen AFC’s resources to support infrastructure development on the African continent.

Elizabeth Littlefield, OPIC’s President and CEO said: “When effective financial leadership catalyzes investment to create significant development impact, we in the DFI community take notice. Recognition for AFC’s work has been rapidly growing as they spur private sector investment in African power and infrastructure projects. OPIC’s support is an indication that we share AFC’s goals to draw additional investor focus to development in Africa. OPIC has been clear that the public resources alone cannot meet the demands in Africa’s power generation and infrastructure sectors. We must engage the private sector.  We’re enthusiastic about joining forces with J.P. Morgan and AFC to provide tailored financing to the development of these much-needed and highly impactful infrastructure projects.”

Andrew Alli, AFC President and  CEO said: “We are delighted with OPIC’s and JP Morgan’s show of faith in the AFC business model and support for our commitment to providing an African led, private sector driven contribution to bridging Africa’s infrastructure divide. Over the last 18 months we have established financing partnerships with a broad range of DFI and private sector partners, with credit facilities in excess of US$850 million. With an investment deficit of over US$40 billion per annum over the next ten years a co-ordinated approach based on strong private and public sector partnerships is vital. AFC has established a world class team of African infrastructure and investment professionals to support the project development, deal structuring and early stage investment that are critical to delivering bankable projects. We will leverage OPIC’s and JP Morgan’s support to further the development of our infrastructure portfolio across Africa.”

Marc Hussey, Managing Director and JP Morgan’s joint Senior Country Officer for Sub-Saharan Africa commented: “We are honoured to be the first U.S. private sector financial institution to provide a co-financing structure with OPIC to the AFC. This is a great opportunity to continue to support and contribute to sustainable economic development on the African continent.

AFC is an African-led investment grade rated multilateral development finance institution, established in 2007, to be the catalyst for private sector infrastructure investment across Africa by proactively developing and financing infrastructure, industrial and financial assets.  AFC fills a critical void in providing project structuring expertise and risk capital to address Africa’s infrastructure development needs, and is increasingly being seen as the benchmark institution for private sector investment in the core infrastructure sectors of power, natural resources, heavy industry, transport, and telecommunications.

Over the last six years AFC have financed investments of approximately US$1.9 billion across the continent.

For more information contact:

Banji Fehintola, Senior Vice President & Treasurer
 Tel: + 234 1 279 9600

Lucy Savage, Vice President, Corporate Communications
 Tel: + 234 1 279 9600


Notes to Editors 

About AFC –

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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.