By Samuel Ouma
Africa’s largest infrastructure solutions provider, Africa Finance Corporation (AFC), has successfully closed a US$389 million dual currency Samurai term loan facility, divided into US$382 million and JPY 1 billion.
The transaction marks 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 JPY1 billion.
The 3-year tenor facility is an important step as AFC builds a coalition of investors to diversify its funding sources, including more institutional capital from Asia and existing partners in Europe and North America.
Japanese investors showed strong interest in the issuance, with Mizuho Bank Ltd, MUFG Bank Ltd. (“MUFG”), and 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.
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.”