Khaleej Times, Tue, Mar 26, 2024 | Ramadan 16, 1445
4 UAE banks help raise Dh4.25-billion syndicated loan for Africa
Emirates:
Four UAE banks helped Africa Finance Corporation (AFC), the leading
infrastructure solutions provider in Africa, raise a $1.16-billion
(Dh4.25-billion) syndicated loan.
In addition to UAE banks, AFC on Tuesday signed a deal with lenders from Europe
and Asia.
Leading international financial institutions — including First Abu Dhabi Bank
(FAB), Mashreqbank, MUFG Bank and Standard Chartered — acted as global
coordinators, with the Industrial and Commercial Bank of China (London Branch)
acting as China coordinator.
Among those who acted as initial mandated lead arrangers and bookrunners were
Abu Dhabi Commercial Bank (ADCB), Emirates NBD Bank and Mizuho and Sumitomo
Mitsui Banking Corporation.
Additionally, Bank of China and Société Générale S.A acted as initial mandated
lead arrangers.
Société Générale, Bank Muscat and Intesa Sanpolo Bank Luxembourg S.A. joined the
syndicate as first-time lenders.
Initially launched at $1 billion, the three-year syndicated loan was upsized
after being oversubscribed by 49 per cent, underscoring global investor
confidence in AFC's creditworthiness and its ability to navigate the current
economic landscape marked by evolving global complexities.
Proceeds from the loan will be deployed to advance Africa’s infrastructure gap
and unleash the continent’s potential, leading to prosperity for all Africans.
“The global capital market’s overwhelming interest in Africa’s growth story is
evident in the large pool of lenders that supported this syndication, making it
AFC’s largest ever. This is a significant endorsement of our commitment to
ensure that infrastructure projects support local processing and value capture,
thereby providing the much-needed impetus to African industrialisation, enhanced
export earnings and job creation,” said Samaila Zubairu, president and CEO of
AFC.
In February 2024, the UAE-based company SkyPower Global and Africa Finance
Corporation inked a deal to instal a 200-megawatt clean energy plant in DR
Congo.
Spanned over four phases, the first phase of the DRC Green Giant project will
cost $200 million (Dh734 million) and create 6,000 job years. In total, the
entities signed a 1,000MW Solar Power Purchase Agreement (PPA) with the Congo’s
state-owned utility, Société Nationale d’Electricité.
In 2023, AFC signed a $625 million syndicated loan, its second largest, with
lenders predominantly from the Middle East and Asia.