Africa Finance Corporation (AFC) has raised US$300 million from 7 Indian banks to finance infrastructure projects in Africa.
The announcement was made on Thursday, November 14, 2024, by the Bank of Africa, which acted as lead arranger.
The seven Indian banks involved include State Bank of India, Canara Bank, Bank of India, UCO Bank, Indian Bank, SBI and Indian Overseas Bank.
This fund-raising, 50% oversubscribed, marks a significant step forward in the financing strategy of AFC, a major player in African infrastructure development.
Said Adren, Managing Director of BOA UK, stressed the importance of this transaction in attracting funds from new regions such as India.
“We have always believed in the potential of attracting capital to Africa from new regions, such as India. This success paves the way for future capital flows to Africa”, he asserted.
For her part, BOA-DIFC Branch Managing Director Zineb Tamtaoui said the transaction also illustrates BOA UK’s expertise in managing the specific requirements of international lenders.
“We are delighted to have contributed our expertise to bring this landmark transaction to a successful conclusion,” she said.
It should be noted that these funds are being raised at a time when the institution, founded in 2007 with an initial capital of $1.1 billion, is seeking to open up 24% of its capital to non-African shareholders in order to stimulate investment on the continent.
At the same time, AFC is seeking to diversify its sources of financing. This is why it plans to raise a $300 million sukuk at the end of the year, as its CEO, Samaila Zubairu, told Bloomberg at the beginning of November 2024.
AGNES KAYEMBE