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Tag: First Abu Dhabi Bank PJSC

  • AFC Secures Inaugural AED 937.5 Million Sustainability-Linked Loan Backed by UAE Banks

    AFC Secures Inaugural AED 937.5 Million Sustainability-Linked Loan Backed by UAE Banks

    Africa Finance Corporation (AFC), the continent’s leading infrastructure solutions provider, has secured an inaugural Sustainability-Linked Term Loan Facility, marking a significant milestone in the Corporation’s innovative funding strategy and deepening its financial ties with the UAE.

    The AED 937.50 million (US$255 million) facility reflects AFC’s commitment to use financial innovation tools to optimise funding for transformative infrastructure. Along with further expanding AFC’s geographical funding base, the transaction aligns future borrowing costs with measurable environmental outcomes through predefined Sustainability Performance Targets (SPTs). The structure allows AFC to benefit from reduced loan costs upon achieving key sustainability targets, signaling to investors and stakeholders the importance of environmental responsibility to its infrastructure investment mandate.

    The loan facility was anchored by a syndicate of prominent UAE-based financial institutions. Abu Dhabi Commercial Bank PJSC, Emirates NBD Capital Limited, First Abu Dhabi Bank PJSC, Mashreqbank PSC, and the National Bank of Ras Al Khaimah (P.S.C.) acted as Initial Mandated Lead Arrangers and Bookrunners (IMLABs). Mashreqbank PSC additionally served as Global Coordinator and Documentation Agent, while First Abu Dhabi Bank PJSC acted as Sustainability Coordinator and Emirates NBD Bank (P.J.S.C.) acted as the Facility Agent.

    “This facility represents a key milestone in AFC’s journey,” said Banji Fehintola, Executive Board Member & Head, Financial Services, AFC. “By tapping the UAE Dirham market and embedding sustainability performance into our funding terms, we are not only diversifying our funding sources but also aligning our financing strategy with our mission to catalyse infrastructure-driven economic growth and industrial development across Africa. This transaction is a testament to the strength of our partnerships in the UAE and our continued commitment to sustainable infrastructure development across Africa.”

    This facility builds on AFC’s strong momentum in diversified and sustainable capital raising. Following a record US$1.16 billion syndicated loan in 2024, AFC debuted a US$500 million hybrid capital issuance and a US$400 million Murabaha facility in 2025. The Corporation also expanded its climate finance instruments – having issued a CHF150 million Green Bond in 2020, and in 2024, pioneering Green Shares with a US$30 million equity investment from the African Development Bank. These efforts complement AFC’s strategic stake in Lekela Power, through Infinity, forming Africa’s largest renewable energy platform with over 1 GW of clean power capacity, reaching 1.2 million homes and avoiding 7.9 million tonnes of CO₂ emissions annually.

  • Africa Finance Corporation (AFC) Sweeps IJGlobal and Global Capital Awards with Hat Trick of Major Wins

    Africa Finance Corporation (AFC) Sweeps IJGlobal and Global Capital Awards with Hat Trick of Major Wins

    Africa Finance Corporation (AFC), the continent’s leading infrastructure solutions provider, has been honoured with three prestigious accolades, further underscoring its impact in shaping Africa’s financial landscape. At the IJGlobal Awards 2024 held recently in London, AFC was named Guarantor of the Year, Africa, and also received the Market Innovation Award, Africa. The following evening, AFC was recognised with the African Deal of the Year at the Global Capital Syndicated Loan Awards in London. The trio of awards showcase AFC’s pioneering role in infrastructure financing, risk mitigation, and innovative financial solutions that drive sustainable economic growth across Africa.

    AFC’s triple win highlights its lead role in arranging a record €2 billion syndicated facility for the Bank of Industry (BOI), the largest capital raise in the history of African development finance institutions. AFC served as Global Coordinator, Lead Co-Arranger, Underwriter, Bookrunner, and Guarantor in the successful syndication.

    Leveraging its structuring and credit enhancement, AFC assembled a consortium of international financial institutions for the facility, including Standard Chartered Bank, African Export-Import Bank, First Abu Dhabi Bank PJSC, FirstRand Bank Limited (through its Rand Merchant Bank division – London Branch), Mashreqbank PSC, SMBC Bank International PLC, Absa Bank (Mauritius) Limited, Absa Bank Limited, and the Export-Import Bank of India (London Branch).

    AFC has consistently led the way in unlocking international capital markets for African institutions. In 2023, AFC supported the Egyptian Government as Re-Guarantor on a JPY75 billion Samurai Bond Issue, exemplifying AFC’s role as a key enabler of global financing for African sovereigns. This transaction won AFC the Innovation of the Year Award (MENA) at the IJGlobal Awards 2023.

    Earning Guarantor of the Year, the Market Innovation Award, and African Deal of the Year reaffirms AFC’s expertise in attracting global capital to African markets and its commitment to structuring innovative financing solutions that bridge the continent’s infrastructure gap. AFC’s investment strategies continue to drive economic resilience and industrialization across the continent.

    “We are honored to receive these prestigious awards, which reflect AFC’s ongoing mission to unlock Africa’s infrastructure potential through financial innovation,” commented Samaila Zubairu, President & CEO of Africa Finance Corporation. “These recognitions further validate our credentials as a trusted partner in mobilizing capital to drive sustainable development across the continent. We extend our gratitude to our partners and stakeholders whose collaboration has been instrumental in achieving these milestones.”

    Banji Fehintola, Executive Director and Head of Financial Services at AFC, said: “These recognitions from IJGlobal and Global Capital are a testament to AFC’s leadership in structuring innovative financial solutions that de-risk investments and attract international capital to Africa. The success of the €2 billion syndicated facility for BOI demonstrates our ability to mobilize global funding at scale, supporting economic development and industrialization across the continent.”

    The IJGlobal Awards celebrate outstanding achievements in global greenfield and refinancing deals across various sectors that shape the infrastructure and energy landscape, while the Global Capital Syndicated Loan Awards honour the most significant and innovative syndicated loan transactions worldwide.

  • Africa Finance Corporation (AFC) secures US$625 million Syndicated Loan with New Lenders from Middle East and Asia

    Africa Finance Corporation (AFC) secures US$625 million Syndicated Loan with New Lenders from Middle East and Asia

    …this latest funding is a testament to the Corporation’s resilience and exceptional creditworthiness in a challenging macroeconomic environment of rising interest rates

     In a move to further diversify its debt profile, Africa Finance Corporation, the leading infrastructure solutions provider on the continent, announces that it has secured a US$625 million syndicated loan with new lenders from the Middle East and Asia. Gulf Bank, National Bank of Ras Al-Khaimah, China CITIC Bank Corporation, Qatar National Bank, Doha Bank and Industrial Bank of Korea Limited joined the syndicate as first-time lenders to AFC, strengthening the Corporation’s coalition of investors and global capital market access.

    This latest funding is a testament to the Corporation’s resilience and exceptional creditworthiness in a challenging macroeconomic environment of rising interest rates, tighter financial conditions, capital outflows, and a stronger US dollar. The transaction was upsized from an initially planned US$500 million following an oversubscription of 61%, reflective of the strong demand from investors.

    “Our ability to tap global financial markets despite challenging macroeconomic conditions continues unabated, demonstrating investor confidence in AFC’s strong credit risk profile and broadening global appeal,” said Banji Fehintola, Senior Director and Treasurer of AFC. “The funds raised will support AFC in furthering its mission of fostering economic growth and rapid industrialisation across Africa, whilst ensuring optimal value addition for the continent’s vast resources.”

    First Abu Dhabi Bank PJSC, FirstRand Bank Limited (London Branch), ICBC (London) Plc., Mashreqbank PSC (acted as agent), MUFG Bank, Ltd., Standard Chartered Bank, and SMBC Bank International Plc. acted as Mandated Lead Arrangers and Bookrunners on this three-year syndicated loan.  

    AFC’s footprint spans 40 member countries across Africa and a pipeline of projects that blend positive social and environmental impact with superior risk-adjusted returns. The Corporation recorded an outstanding performance in its latest financial year, with total assets growing 23% to US$10.5 billion and the Corporation realising its five-year growth target a year early. AFC also made over US$1.5 billion in net borrowings in FY2022, expanding bilateral relationships in the international loan market to diversify its funding sources.