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Africa Finance Corporation (AFC), a leading infrastructure solutions provider in Africa, has successfully closed a US$389 million dual currency Samurai term loan facility, split into US$382 million and JPY ¥1 billion.

The transaction marks AFC’s second foray into the Japanese capital markets, following an inaugural Samurai loan facility in 2019, when the Corporation raised US$233 million and JPY1 billion.

AFC said the 3-year tenor facility is an important step as it builds a coalition of investors to diversify its funding sources, including more institutional capital from Asia and existing partners in Europe and North America.

Japanese investors showed strong interest in the issuance with Mizuho Bank Ltd, MUFG Bank Ltd. ("MUFG"), Sumitomo Mitsui Banking Corporation ("SMBC") acting as Mandated Lead Arrangers and Bookrunners. Other participating financial institutions include Bank of Yokohama, Norinchukin Bank, Shiga Bank, and Gunma Bank.

Proceeds from this facility will be used for general corporate purposes, AFC said.

AFC has a strong record in the Asian capital markets, issuing a US$300 million loan facility through the Export-Import Bank of China in 2018 and a US$140 million Kimchi term loan facility in 2019.

The government of Japan, shifting its focus from aid to investment, recently pledged $30 billion over the next three years for the resilient and sustainable development of the African continent. The announcement was made during the recently concluded eighth Tokyo International Conference on African Development (TICAD), signalling a boom in Africa-Asia economic relations.

“Asia is a very important region for us and the participation of Asian investors in our bond issuances has grown significantly over time,” said Banji Fehintola, Senior Director and Treasurer of AFC. “The success of this loan offering is testament to AFC’s ability to diversify its funding sources in mobilising global capital to build critical infrastructure in Africa and transform lives.”

Since its founding in 2007, AFC has invested over US$10 billion in infrastructure assets that provide essential services in the core infrastructure sectors of power, natural resources, heavy industry, transport, and telecommunications across 35 African countries.