Good news for the Africa Finance Corporation (AFC). The multilateral development finance institution has secured a $389 million Samurai dual currency term loan facility, split into $382 million and JPY 1 billion. The facility was obtained through an AFC issue arranged by Japanese investors Mizuho Bank, MUFG Bank, Sumitomo Mitsui Banking Corporation (SMBC).
The issue was also underwritten by Bank of Yokohama, Norinchukin Bank, Shiga Bank and Gunma Bank. These financial institutions are responding to Japan’s new strategy to accelerate its investments in Africa to counter China’s influence in Africa. This commitment was reaffirmed at the 8th Tokyo International Conference on African Development (Ticad-8) in Tunisia where Japan reaffirmed its willingness to invest in key sectors related to sustainable development in Africa, including renewable energy, sustainable cities and access to drinking water.
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“Asia is a very important region for us and the participation of Asian investors in our bond issues has increased significantly over time,” says Banji Fehintola, AFC’s Senior Director and Treasurer. The Lagos-based financial institution is diversifying its partners to accelerate its investments in several sectors, including renewable energy.
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 Italian development finance institution Cassa Depositi e Prestiti (CDP).
Jean Marie Takouleu