Admin I Monday, Sept 29, 2025
LAGOS – The Africa Finance Corporation (AFC), a key player in financing the continent’s infrastructure, has successfully closed its largest ever debt facility, a US$1.5 billion syndicated term loan.
The landmark deal, which saw strong demand and was oversubscribed from its initial $1.3 billion target, underscores robust international investor confidence in both the AFC and Africa’s long-term infrastructure growth prospects.
The three-year facility attracted a diverse consortium of new and returning commercial lenders, spanning the Middle East, Africa, Asia, and Europe. New participants included Bank of Communications, Burgan Bank, Export Development Bank of Egypt, and Hua Nan Bank.
The substantial capital injection will be deployed for general corporate purposes, significantly enhancing the AFC’s financial capacity to catalyse infrastructure-driven economic growth and industrial development across the continent.
The success of the syndication was not only in its size but also in its terms. The AFC secured more favourable pricing on the loan compared to its $1.16 billion Syndicated Term Loan Facility which closed just last year, demonstrating a deepening of its credit profile and standing in the global capital markets.
Banji Fehintola, Executive Board Member and Head of Financial Services of AFC, hailed the transaction as a major milestone.
“This landmark transaction reinforces AFC’s standing as a trusted institution in the global capital markets and demonstrates our ability to mobilise capital at scale for Africa,” Mr. Fehintola said in a statement.
“It strengthens our role in bridging Africa’s infrastructure needs with global capital and accelerates our mission to drive rapid industrialisation and unlock the continent’s full economic potential.”
Global Markets Back African Development
The syndication was led by a powerful consortium of global financial institutions, highlighting the AFC’s deep connectivity with international lenders. Abu Dhabi Commercial Bank PJSC, Commerzbank AG, and Standard Chartered Bank served as Global Coordinators and Initial Mandated Lead Arrangers and Bookrunners.
Other major financial heavyweights serving as Initial Mandated Lead Arrangers and Bookrunners included Bank of China Limited (London Branch), First Abu Dhabi Bank PJSC, Mashreqbank PSC, MUFG Bank, Ltd., FirstRand Bank Limited (through its Rand Merchant Bank division), State Bank of India (DIFC Branch), The Standard Bank of South Africa Limited, Société Générale, and Sumitomo Mitsui Banking Corporation (London Branch).
The deal builds on a year of diversified funding for the AFC, which recently secured an AED 937.50 million Sustainability-Linked Term Loan Facility, further deepening its financial ties with the UAE and broadening its funding base beyond traditional commercial banks to include development finance institutions and bilateral lenders.
The oversubscribed $1.5 billion facility is seen by analysts as a key indicator of appetite for African assets, provided they are structured and executed through highly reputable and well-governed institutions like the AFC.
