The Africa Finance Corporation (AFC) has secured a landmark $255 million loan facility from a consortium of leading banks in the United Arab Emirates, marking its first-ever entry into the UAE Dirham loan market. This strategic move not only diversifies AFC’s funding sources but also reinforces its commitment to sustainable infrastructure development across Africa.
“This facility represents a key milestone in AFC’s journey,” said Banji Fehintola, Executive Board Member and Head of Financial Services at AFC. “By tapping the UAE Dirham market and embedding sustainability performance into our funding terms, we are not only diversifying our funding sources but also aligning our financing strategy with our mission to catalyse infrastructure-driven economic growth and industrial development across Africa.”
The facility is structured around Sustainability Performance Targets (SPTs)—a set of measurable environmental benchmarks. If AFC meets these targets, it will benefit from reduced borrowing costs, creating a direct financial incentive to deliver on its green commitments. This innovative structure sends a strong signal to global investors about the growing importance of climate-aligned finance in Africa’s development agenda.
The transaction was led by a group of prominent UAE-based banks, including:
- Abu Dhabi Commercial Bank
- Emirates NBD Capital
- First Abu Dhabi Bank
- Mashreqbank
- National Bank of Ras Al Khaimah
These institutions acted as Initial Mandated Lead Arrangers and Bookrunners, with Mashreqbank serving as Global Coordinator and Documentation Agent, First Abu Dhabi Bank as Sustainability Coordinator, and Emirates NBD as Facility Agent.
This facility adds to a series of bold financing moves by AFC in recent years. Over the past 18 months, the corporation has:
- Closed a record $1.16 billion syndicated loan
- Issued a $500 million hybrid capital instrument
- Secured a $400 million Murabaha facility
- Pioneered green finance instruments, including a CHF150 million green bond in 2020 and a $30 million green equity deal with the African Development Bank
These efforts underscore AFC’s role as a trailblazer in sustainable finance, leveraging innovative instruments to fund infrastructure that is both economically transformative and environmentally responsible.
With the UAE increasingly positioning itself as a global hub for climate finance, this deal highlights the growing financial symbiosis between Africa and the Gulf region. It also reflects a shared commitment to mobilizing capital for climate-resilient infrastructure and sustainable industrialization across the African continent.
