Africa Finance Corporation (AFC) completed its debut borrowing, a US$50-million bilateral loan facility with Standard Bank Plc, a member of Standard Bank Group.
This marks AFC's initial step in fully leveraging its balance sheet to invest in and support the development of critical infrastructure in the power, natural resources, transport, heavy industry and telecommunications sectors.
Standard Bank Plc was the sole arranger, lender and agent of the facility.
Commenting on AFC's debut borrowing in the International Loan markets, Andrew Alli, CEO and President of AFC said: "All financial institutions need to leverage their balance sheets in order to have access to the necessary liquidity to fund the assets they create.
"This bilateral facility with Standard Bank marks the launch of AFC's international borrowing strategy. We are pleased that our maiden borrowing is with Standard Bank whom we expect to continue to work with closely. This loan demonstrates the strengthening financial capacity of the continent and the close intra-African ties that are being developed.
"We expect to continue to develop our funding program by working with institutions such as Standard Bank, as well as by tapping the debt capital markets."
David McCaig, Global Head of Debt Products at Standard Bank Plc, welcomed the successful closing of the loan facility. He said: "Standard Bank Group is immensely proud to be part of AFC's evolving growth story across Africa and internationally. We believe that this facility will serve as a solid foundation for all future borrowings of AFC and will assist in establishing the Corporation as one of the leading capital markets participants from Africa."
AFC is an African-led international 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.
The maiden borrowing in the international loan markets, consolidates AFC's fast developing track record as the benchmark institution for financing the development of infrastructure projects in Africa
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