Africa Finance Corporation set to raise $150 million loan

08 Feb 2016
Chibuike Oguh

Summary

The AFC has reportedly asked the Bank of Tokyo-Mitsubishi UFJ, Citibank, Emirates NBD, JP Morgan and Standard Chartered to arrange the loan.

Andrew Alli, CEO, Africa Finance Corporation

The Africa Finance Corporation (AFC), a multilateral institution, is seeking to raise a $150 million syndicated loan.

According to Reuters, the AFC has reportedly asked the Bank of Tokyo-Mitsubishi UFJ, Citibank, Emirates NBD, JP Morgan and Standard Chartered to arrange the loan among banks and other investors.

In 2007, the AFC was established with a $1.26 billion fully paid-in equity capital to address Africa’s infrastructure development needs while seeking a competitive return on capital for its shareholders. AFC shareholders include various African financial institutions (47.6 percent), the Central Bank of Nigeria (42.5 percent), and several industrial and corporate shareholders (9.8 percent).

Current member-nations of the AFC include, Nigeria (host country), Guinea-Bissau, Sierra Leone, The Gambia, Liberia, Guinea, Ghana, Chad, Cape Verde, Gabon and Cote d’Ivoire. Several prospective member-countries are now at different stages of due diligence.

Some major projects that have been financed by AFC include: Main One, a submarine communications company; Seven Energy, a Nigeria-based oil and gas company; Ethiopia Airlines, the flagship carrier of Ethiopia; the Kpone Independent Power Plant, a 350MW power plant in Accra, Ghana, among others.


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