Four UAE banks collaborated with Africa Finance Corporation (AFC), the leading infrastructure solutions provider in Africa, to raise a $1.16-billion (Dh4.25-billion) syndicated loan. Additionally, AFC signed a deal with lenders from Europe and Asia on Tuesday.
Leading international financial institutions, including First Abu Dhabi Bank (FAB), Mashreqbank, MUFG Bank, and Standard Chartered, served as global coordinators, with the Industrial and Commercial Bank of China (London Branch) acting as China coordinator.
Abu Dhabi Commercial Bank (ADCB), Emirates NBD Bank, Mizuho, and Sumitomo Mitsui Banking Corporation were among the initial mandated lead arrangers and bookrunners. Bank of China and Société Générale S.A also acted as initial mandated lead arrangers. Société Générale, Bank Muscat, and Intesa Sanpolo Bank Luxembourg S.A. joined the syndicate as first-time lenders.
The three-year syndicated loan, initially launched at $1 billion, was upsized after being oversubscribed by 49 percent, showcasing global investor confidence in AFC’s creditworthiness and its ability to navigate the current economic landscape marked by evolving global complexities.
Proceeds from the loan will be utilized to address Africa’s infrastructure gap and unlock the continent’s potential, fostering prosperity for all Africans.
Samaila Zubairu, president and CEO of AFC, stated, “The global capital market’s overwhelming interest in Africa’s growth story is evident in the large pool of lenders that supported this syndication, making it AFC’s largest ever.”
In February 2024, UAE-based company SkyPower Global and Africa Finance Corporation signed a deal to install a 200-megawatt clean energy plant in DR Congo. The first phase of the DRC Green Giant project, spanning four phases, will cost $200 million (Dh734 million) and create 6,000 job years. In total, the entities signed a 1,000MW Solar Power Purchase Agreement (PPA) with the Congo’s state-owned utility, Société Nationale d’Electricité.
In 2024, AFC signed a $625 million syndicated loan, its second largest, with lenders predominantly from the Middle East and Asia.
