Africa Finance Corporation (AFC), the continental infrastructure and industrial investments provider, has secured a US$100mn, 10-year term loan from FinDev Canada, Canada’s bilateral Development Finance Institution.
- •The transaction is the African Finance Corporation’s debut in the Canadian market and its first partnership with FinDev Canada, and is also FinDev Canada’s inaugural infrastructure financing in Sub-Saharan Africa.
- •The facility will strengthen AFC’s funding base and support a growing pipeline of renewable energy and low-carbon transport projects across Sub-Saharan Africa.
- •FinDev Canada joins African Finance Corporation’s growing pool of funding partners which already includes multiple international Development Finance Institutions.
“The transaction not only diversifies AFC’s funding base but also deepens North America’s participation in Africa’s growth story. We look forward to building on this relationship to catalyse even greater investment flows into Africa’s infrastructure sector,” Banji Fehintola, Executive Board Member and Head of Financial Services, Africa Finance Corporation, said.
AFC has also partnered with other development institutions such as the India Exim Bank, The Export-Import Bank of the Republic of China, US International Development Finance Corporation and Germany’s DEG, Netherland’s FMO and France’s Proparco. Others include Cassa Depositi e Prestiti SpA (CDP) and KfW – the German Development Bank.
In June, the AFC secured a EUR 250 million 10-year term loan from CDP, backed by a guarantee from SACE, the Italian insurance and financial group fully owned by the Italian Ministry of Economy and Finance, covering up to 80% of the facility amount.
In September, it also closed a US$1.5bn syndicated loan, its largest-ever debt facility.
The continental lender has 46 member countries and has invested over US$15 billion in 36 African countries since its inception.