AFRICA: AFC raises $389 million in Japan to finance sustainable infrastructure

Good news for the Africa Finance Corporation (AFC). Multilateral Development Finance Institution Secures $389 Million Dual Currency Samurai Term Loan Facility, Split into $382 Million and 1 Billion Yen. This facility was obtained through an AFC issue arranged by Japanese investors Mizuho Bank, MUFG Bank, Sumitomo Mitsui Banking Corporation (SMBC).

The issue was also underwritten by Bank of Yokohama, Norinchukin Bank, Shiga Bank and Gunma Bank. These financial institutions are thus responding to Japan’s new strategy aimed at accelerating its investments in Africa to counter China’s influence in Africa. This commitment was reaffirmed during the 8e Tokyo International Conference on African Development (TICAD-8) in Tunisia where Japan reaffirmed its willingness to invest in key sectors related to sustainable development in Africa, including renewable energies, sustainable cities and access to drinking water.

Also read- AFRICA: Mizuho bank joins forces with AFC to finance sustainable infrastructure

“Asia is a very important region for us and the participation of Asian investors in our bond issues has increased significantly over time,” says Banji Fehintola, Principal Director and Treasurer of the AFC. The Lagos-based financial institution is diversifying its partners to accelerate its investments in several sectors, including renewable energy.

Recently, AFC partnered with Egyptian company Infinity Energy to acquire Lekela Power, an independent power producer (IPP) with a portfolio of 1 GW of wind assets, including five operational wind farms in Africa du Sud (624 MW), an operational wind farm in Egypt (252 MW), another in Senegal (159 MW). And as part of its diversification strategy, AFC recently secured a €100 million loan from Italian development finance institution Cassa Depositi e Prestiti (CDP).

Jean Marie Takouleu

Scroll to Top