In a significant move that highlights the United Arab Emirates’ (UAE) growing influence in global financial markets, four UAE banks have played a pivotal role in helping the Africa Finance Corporation (AFC) secure a substantial syndicated loan. The AFC, recognized as a premier infrastructure solutions provider in Africa, has successfully raised a staggering $1.16 billion (Dh4.25 billion) with the aid of these banks.
The deal, signed on Tuesday, also saw participation from prominent lenders across Europe and Asia, reflecting a global vote of confidence in Africa’s economic prospects. Among the leading international financial institutions that acted as global coordinators were First Abu Dhabi Bank (FAB), Mashreqbank, MUFG Bank, and Standard Chartered, with the Industrial and Commercial Bank of China (London Branch) serving as the China coordinator. This diverse group of financiers underscores the widespread interest in Africa’s growth story.
Further bolstering this financial endeavor, Abu Dhabi Commercial Bank (ADCB), Emirates NBD Bank, Mizuho, and Sumitomo Mitsui Banking Corporation were among the initial mandated lead arrangers and bookrunners. The syndicate was also strengthened by the participation of the Bank of China and Société Générale S.A as initial mandated lead arrangers, while Société Générale, Bank Muscat, and Intesa Sanpolo Bank Luxembourg S.A joined as first-time lenders.
The loan, initially set at $1 billion for a three-year term, was upsized by 49 percent after being oversubscribed. This remarkable response not only highlights the AFC’s solid credit standing but also its adeptness at navigating the complex global economic landscape.
The funds raised through this syndicated loan are earmarked for bridging Africa’s significant infrastructure gap, a critical step in unleashing the continent’s full potential and fostering prosperity for all Africans. Samaila Zubairu, the president and CEO of AFC, hailed this syndication as AFC’s largest ever, viewing it as a strong endorsement of the corporation’s commitment to infrastructure projects that enhance local value, spur industrialization, boost export earnings, and create jobs in Africa.
In a related development, in February 2024, the UAE-based company SkyPower Global, in collaboration with AFC, announced plans to install a 200-megawatt clean energy plant in the Democratic Republic of Congo (DRC). This project, known as the DRC Green Giant, will span four phases, with the first phase costing $200 million (Dh734 million) and expected to create 6,000 job years. This is part of a broader 1,000MW Solar Power Purchase Agreement with Congo’s state-owned utility, Société Nationale d’Electricité.
The AFC’s success in securing a $625 million syndicated loan in 2023, predominantly supported by lenders from the Middle East and Asia, laid the groundwork for this latest, more substantial financial package. The continued interest and involvement of major global financial institutions in such initiatives underscore a growing confidence in Africa’s economic trajectory and the pivotal role of entities like AFC in shaping its future.
