Global investors have committed a record $2 billion syndicated loan to the Africa Finance Corporation (AFC) for Africa’s infrastructure drive.
In a statement on Thursday, the AFC said the facility signals strong confidence in the continent’s infrastructure growth prospects despite ongoing geopolitical tensions and volatility in international markets.
The funding, AFC’s largest syndicated loan facility to date, was initially launched at $1.6 billion before being increased to $2 billion following strong demand from lenders across Asia Pacific, Europe, the Middle East and Africa.
It indicates that the broad participation reflects growing international support for AFC’s infrastructure-led development model and its strategy of building integrated industrial and infrastructure ecosystems across the continent.
Asia Pacific and European lenders each accounted for 35 per cent of participation in the transaction, while Middle Eastern institutions contributed 25 per cent and African banks accounted for five per cent.
The facility is expected to strengthen AFC’s capacity to expand investments in key sectors that support trade, industrialisation, job creation and economic growth across Africa.
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The successful fundraising comes as the AFC continues to strengthen its financial profile.
Pinnacle Daily reports that the corporation recently secured an ‘A’/A-1 rating with a Positive Outlook from S&P Global Ratings, adding to its long-standing A3 rating from Moody’s and A+ rating from Japan Credit Rating Agency.
Commenting on the transaction, AFC President and Chief Executive Officer, Samaila Zubairu, said the strong investor response reflects growing recognition of infrastructure as the foundation for Africa’s next phase of economic growth.
“This transaction reflects growing recognition that Africa’s next phase of growth will be driven not by isolated projects, but by integrated infrastructure systems that connect energy, transport, logistics, industry and technology.
“As global capital seeks resilient long-term growth opportunities, AFC has positioned itself at the centre of Africa’s transformation by developing the platforms and ecosystems that convert infrastructure into industrialisation, jobs and economic competitiveness,” Zubairu added.
The record facility comes at a time of expansion for AFC, as the corporation recently announced plans to establish its first regional office outside Lagos in Nairobi, while its total assets have surpassed $19 billion and its membership has grown to 48 African countries.
According to AFC, the new financing will complement efforts to mobilise larger pools of African institutional capital, including pension funds, for priority infrastructure projects across the continent.
The debt facility was arranged by a consortium of international financial institutions led by Barclays, Commerzbank, First Abu Dhabi Bank and FirstRand Bank through its Rand Merchant Bank division in London.
Several other banks from Europe, Asia, the Middle East and Africa also participated in the transaction, underscoring broad-based investor confidence in AFC and its long-term infrastructure strategy.
AFC Executive Board Member and Head of Financial Services, Banji Fehintola, described the transaction as a major milestone for the corporation.
“Closing AFC’s largest-ever syndicated loan facility in a complex global environment is a defining milestone, one that reflects the unwavering confidence our lending partners place in AFC’s credit strength, strategic relevance and execution capabilities.
“The strong support from a broad group of international financial institutions reaffirms sustained investor conviction in AFC’s mission to deliver transformative infrastructure and industrial projects with lasting economic impact across Africa,” Fehintola added.
The record fundraising highlights a growing global appetite for African infrastructure assets and positions AFC to scale investments in sectors critical to the continent’s economic transformation.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X