In a bid to strengthen global partnerships, the Africa Finance Corporation (AFC) has closed a $300 million India-focused syndicated loan. This marks a key milestone in AFC’s strategy to diversify its international investor base and mobilize global capital to drive transformative infrastructure projects across Africa.
The syndicated loan, celebrated at a commemorative event in Dubai, introduced a new group of lenders from India, underscoring AFC’s position as a leading investment-grade-rated development financial institution. Bank of Africa UK PLC (BOA UK) played a pivotal role as the sole mandated lead arranger and bookrunner, coordinating a syndicate of seven prominent Indian banks.
Among the participating banks were five newcomers to AFC’s lender base—State Bank of India, Canara Bank, Bank of India, Indian Bank, and UCO Bank—as well as two returning partners, SBI (Mauritius) and Indian Overseas Bank. The transaction was oversubscribed by 50%, reflecting strong investor confidence in AFC’s mission and operational capabilities.
This deal further bolsters AFC’s ongoing fundraising success, including a $1.16 billion debt facility earlier this year, which drew support from lenders in the Middle East, Europe, and Asia. With an A3 credit rating from Moody’s and a stable outlook, AFC continues to demonstrate its financial soundness and strategic importance in global capital markets.
A Boost for Africa’s Development Goals
AFC’s leadership highlighted the significance of this achievement in advancing Africa’s development. Banji Fehintola, Executive Board Member and Head of Financial Services at AFC, expressed gratitude for the confidence shown by Indian lenders.
“This transaction is a testament to our ability to mobilize global capital for impactful development. By expanding our lender base to include Indian financial institutions, we create transformative opportunities that foster resilience and sustainable growth across Africa,” Fehintola stated.
The funds raised will be channeled into key infrastructure projects, aligning with AFC’s mission to catalyze economic growth and industrialization on the continent. These projects will address critical needs in sectors such as energy, transportation, and industrial development, paving the way for long-term socioeconomic progress.
Expanding Capital Sources
Bank of Africa UK PLC emphasized the importance of tapping into previously unexplored lender geographies like India. Speaking on this development, Adren, Chief Executive Officer of BOA UK, remarked, “This transaction demonstrates that there is strong appetite for Africa-focused investments in new markets like India, provided they are structured and presented effectively. We hope this opens the door for more capital inflows into Africa.”
Zineb Tamtaoui, General Manager at Bank of Africa SA, DIFC Branch, echoed similar sentiments, noting the unique requirements of Indian lenders. “We are proud to have leveraged our expertise to successfully execute this landmark transaction for AFC,” Tamtaoui said.
Driving Positive Change
As AFC continues to mobilize international financing, its ability to attract diverse investors solidifies its leadership in driving impact development. This $300 million loan marks a new chapter in Africa’s journey toward sustainable infrastructure development, reinforcing the continent’s position as a global investment destination.
