AFC secures $250m loan from US government

Africa Finance Corporation, the leading infrastructure solutions provider in Africa, announces it has secured a $250m tier-2 capital loan from the United States’ International Development Finance Corporation.

Formed in December 2019, DFC is the US government’s development bank established with a lending capacity of up to $60bn to provide financing for solutions to some of the most critical challenges facing the developing world.

DFC expanded and modernised the tools of the Overseas Private Investment Corporation.

The facility to AFC is expected to strengthen AFC’s investment capacity by enabling it to provide competitive financing solutions for closing Africa’s infrastructure deficit. It also further complements AFC’s strategy of diversifying its investor base.

President and Chief Executive Officer of AFC, Samaila Zubairu, commenting on the announcement, noted, “Africa and the United States have enjoyed a longstanding partnership spanning several decades. Indeed, AFC has partnered the US on several infrastructure initiatives, including the Power Africa initiative, and regularly receives investments from US-based investors in its Eurobond issuances.”

He stated further, “This announcement, therefore, marks a natural evolution as the US Government seeks to play a greater role in Africa’s development by establishing a dedicated DFI. Crucially, this funding will also ensure the Corporation is able to continue fulfilling its objectives in the wake of the ongoing COVID-19 pandemic, which has placed a greater responsibility on development finance institutions in helping to drive a sustainable recovery across Africa.”

The CEO of DFC, Adam Boehler, added, “DFC is proud to expand our relationship with a key infrastructure investor in Africa. This financing advances DFC’s strong commitment to Africa by supporting investment in the modern infrastructure that is essential to economic growth and expanded connectivity with the world.”