Last week we noted the TICAD 7 meeting on international development in Africa, held in Yokohama.  The following announcement again demonstrates Japan’s position as a leader in funding for African development.

Africa Finance Corporation (AFC), Africa's leading investment grade infrastructure solutions provider, announces the close of general syndication of a minimum US$150,000,000 Dual Currency Samurai Term Loan Facility with MUFG Bank, Ltd. (MUFG) and Sumitomo Mitsui Banking Corporation (SMBC), acting as Mandated Lead Arranger and Bookrunner.

The Facility, which comprises two tranches, with both tranches (USD denominated Tranche A and JPY denominated Tranche B) carrying a tenor of 3 years each (bullet repayment), is AFC's first Asian-currency denominated loan facility. It is an important step as the Corporation builds a broad coalition of investors to diversify its funds and allow institutions from around the globe to participate in Africa's development.

The deal was very well received in the Japanese loan market leading to a significant over-subscription. The Facility will be upsized accordingly.

Proceeds from the Facility will be used for general corporate purposes in accordance with AFC's Establishment Agreement and the Charter.

Samaila Zubairu, President and CEO of AFC, commented: "Since joining AFC, one of my main goals has been to build a broad coalition of international investors. Securing this loan facility brings us one step closer. The Japanese loan market's overwhelming interest in the Facility, leading to its oversubscription, allows us to diversify our funding sources and supports our mandate of providing transformational solutions to Africa's infrastructure deficit.

"Asia is key to Africa's growth. Japan, in particular, is an important player and its guiding principles - quality growth, which focuses on inclusiveness, sustainability and resilience as well as human security, which focuses on capacity building - are completely aligned with AFC's mission and vision."

The Facility launched into general syndication on 23 July 2019. The signing of the loan agreement is scheduled for 2 September 2019.