Adebayo Ogunlesi, Chairman AFC
The Africa Finance Corporation (AFC) at the weekend disclosed the completion of a landmark commercial borrowing of $200 million 10-year facility granted by the African Development Bank (AfDB).
A statement said AFC took the credit to enable it diversify its long-term funding sources, leverage its balance sheet, and also increase its capacity to support the development of vital infrastructure in the power, natural resources, transport, heavy industry and telecommunications sectors in Africa.
AFC is an African-led multilateral financial institution, established in 2007 whose mission is to improve African economies by proactively developing and financing infrastructure, industrial and financial assets.
“AFC is involved as an investor, developer and financier of various infrastructure projects. Currently in its fifth year of operation, AFC is playing a major role in bridging the continent's critical infrastructure investment gap.
“AfDB, a leading multilateral development bank, established 48 years ago with a footprint in key emerging markets, is the sole arranger, lender and agent of the facility,” it added.
At the signing ceremony which took place in Lagos, AfDB’s Resident Representative in Nigeria, Dr. Ousmane Dore said: “The scale and magnitude of the infrastructure deficit African economies face can only be effectively addressed when institutions coalesce in partnership, to finance indigenous long term investment."
Continuing, he expressed satisfaction over the emerging strategic relationship between both institutions, describing them, as two African institutions committed to improving infrastructure services on the continent.
On his part, the President/Chief Executive Officer, AFC, Mr. Andrew Alli, said: "Financial institutions need to leverage their balance sheets in order to have access to the necessary liquidity to fund the assets they create. This facility with AfDB represents a key part of AFC's international funding strategy.
“We are delighted that this long term borrowing is from another African institution with which AFC collaborates closely and is developing a strategic partnership. The transaction demonstrates the increasing financial capacity of the continent to drive economic development and help transform Africa.”