Africa Finance Corporation (AFC) has closed a $389 million dual currency Samurai term loan facility, split into US$382 million and JPY ¥1 billion.
The transaction is AFC’s second foray into the Japanese capital markets, following an inaugural Samurai loan facility in 2019 when the Corporation raised US$233 million and JPY ¥1 billion.
Japanese investors showed strong interest in the issuance with Mizuho Bank Ltd, MUFG Bank Ltd. (“MUFG”), Sumitomo Mitsui Banking Corporation (“SMBC”) acting as Mandated Lead Arrangers and Bookrunners. Other participating financial institutions include the Bank of Yokohama, Norinchukin Bank, Shiga Bank, and Gunma Bank. Proceeds from this facility will be used for general corporate purposes.
AFC is the leading infrastructure solutions provider in Africa but it has a strong record in the Asian capital markets, issuing a US$300 million loan facility through the Export-Import Bank of China in 2018 and a US$140 million Kimchi term loan facility in 2019. Asia is key to Africa’s next phase of growth and Japan, in particular, is an important player as the country has shifted the focus of its engagement with Africa in recent years from giving aid to increasing investment.
Recently, AFC partnered with Egypt’s Infinity Energy to acquire Lekela Power, an independent power producer (IPP) with a portfolio of 1GW of wind assets, including five operational wind farms in South Africa (624MW), one operational wind farm in Egypt (252MW), another in Senegal (159MW). And as part of its diversification strategy, AFC recently secured a €100 million loan from the Italian development finance institution Cassa Depositi e Prestiti (CDP).
Banji Fehintola, Senior Director and Treasurer of AFC, said: “Asia is a very important region for us and the participation of Asian investors in our bond issuances has grown significantly over time. The success of this loan offering is a testament to AFC’s ability to diversify its funding sources in mobilizing global capital to build critical infrastructure in Africa and transform lives.”