Africa Finance Corporation (AFC), has completed a landmark financial deal involving a $200 million 10-year line of credit facility granted by the African Development Bank (AfDB).
The signing ceremony was held in Lagos and the AfDB 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”.
AFC explained that the move was aimed at diversifying its long term funding sources, leverage its balance sheet and thereby increase its capacity to support the development of vital infrastructure in the power, natural resources, transport, heavy industry and telecommunications sectors in Africa.
Dr Ousmane added that the AfDB is pleased about the emerging strategic relationship between it and the AFC, being two African institutions committed to improving infrastructure services on the continent, and expressed AfDB’s commitment to providing assistance to AFC as appropriate in carrying out its mandate across Africa.
Commenting on AFC’s long term funding strategy, Andrew Alli, President and Chief Executive Officer of AFC, 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, and the ability of intra-African partnerships to drive economic development and help transform Africa”.
AfDB is a leading multilateral development bank, set up 48 years ago with a footprint in key emerging markets.
AFC is an African-led multilateral financial institution, set up in 2007, with the mission to improve African economies by pro-actively developing and financing infrastructure, industrial and financial assets.