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  • AFC, NGX partner to unlock capital for infrastructure development

    AFC, NGX partner to unlock capital for infrastructure development

    Nigeria needs to mobilise long-term domestic capital to bridge its infrastructure deficit, estimated to reach $2.3 trillion by 2043.

    Experts at a two-day capacity-building programme organised by Africa Finance Corporation (AFC) and Nigerian Exchange Limited (NGX) were unanimous on the need to strengthen the technical capabilities required to structure and finance infrastructure projects through Nigeria’s capital markets.

    The two-day workshop held in Lagos convened professionals from regulatory agencies, institutional investors, project sponsors, and financial institutions to strengthen capacity in project and infrastructure finance, and to explore how Nigeria’s capital markets can serve as a critical platform for financing sustainable infrastructure.

    Nigeria’s infrastructure deficit, long recognised as a constraint on productivity and competitiveness, is estimated to reach US$2.3 trillion by 2043, with some projections rising toward US$3 trillion over the coming decades.

    The workshop was convened to address the urgent need for innovative financing mechanisms capable of mobilising long-term domestic capital into bankable infrastructure opportunities.

    Executive Board Member and Head of Financial Services, Africa Finance Corporation (AFC ), Banji Fehintola, said closing the continent’s funding gap requires building local expertise and robust market structures that can support complex, long-term projects.

    “At AFC, we are committed to advancing not just project financing, but the full framework required to deliver bankable, sustainable infrastructure solutions. Our partnership with NGX reflects our belief that Nigeria’s capital markets can and must play a pivotal role in mobilising the scale of domestic resources required to drive the country’s long-term development,” Fehintola said.

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    Chief Executive Officer, Nigerian Exchange (NGX), Jude Chiemeka, highlighted the importance of deepening expertise across the market.

    According to him, as capital markets assume a more central role in financing Africa’s development, building technical depth across the entire ecosystem becomes essential.

    “Through NGX X-Academy, our dedicated capacity-building platform, we are equipping market participants with the specialized knowledge required to originate, structure and manage infrastructure assets that meet both local needs and global investment standards. This collaboration with AFC is a critical step in ensuring that Nigeria and the wider region develop the institutional capabilities to attract and deploy patient capital at scale,” Chiemeka said.

    Over the two-day programme participants explored frameworks for project structuring, risk allocation and credit enhancement- tools essential for bringing infrastructure assets to market. The sessions also examined emerging capital market instruments including green bonds, infrastructure REITs, blended finance structures and partial risk guarantees, highlighting practical pathways to mobilize long-term domestic and international capital for infrastructure.

    The workshop marks a milestone in the growing collaboration between AFC and NGX, reinforcing their shared commitment to unlocking sustainable, market-led infrastructure financing. Both institutions plan to build on this momentum through follow up initiatives aimed at deepening engagement and translating insights from the programme into tangible financing solutions for critical infrastructure projects.

  • AFC coordinates two billion euros syndicated facility for BoI

    AFC coordinates two billion euros syndicated facility for BoI

    Africa Finance Corporation (AFC), the continent’s infrastructure solutions provider, has announced its role as Global Coordinator, Lead Co-Arranger, Underwriter, Bookrunner, and Guarantor in the successful syndication of an up to €2 billion facility for Bank of Industry (BoI).

    The transaction is a record global loan syndication for BOI, and marks the largest capital raise in its history, setting a new standard for developmental finance across Africa.

    Proceeds of the facility will be used for general corporate purposes including tofinance trade and trade related projects of eligible corporates in Nigeria.

    The facility was syndicated at two levels with AFC, Standard Chartered Bank, African Export-Import Bank, First Abu Dhabi Bank PJSC, FirstRand Bank Limited, acting through its Rand Merchant Bank division (London Branch), Mashreqbank PSC, SMBC Bank International PLC, Absa Bank (Mauritius) Limited, Absa Bank Limited (acting through its Corporate and Investment Banking division) and Export-Import Bank of India London Branch acting as part of a senior syndicate, together raising an initial €1.43 billion. Following this, AFC led a general syndication, through which an additional €447 million was raised, bringing the total transaction to €1.9 billion, representing an oversubscription of 87 per cent. The facility is expected to further grow to €2 billion.

    This landmark global loan syndication is significant for Nigeria and BoI, as the institution was able to successfully tap the international capital market at a time when credit is scarce and prohibitively expensive. It also highlights market confidence in BOI and AFC as leading financial institutions, demonstrating the power of collaboration and innovation between African financial institutions.

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    “This successful syndication is a significant milestone achievement, not only for BoI but for Africa’s financial landscape as a whole. We are proud to have played a central role in this historic global loan syndication, solidifying AFC’s position as a trusted bridge between global investors and infrastructure projects in Africa,” said Executive Board member & Head of Financial Services at AFC, Banji Fehintola. “Our sincere appreciation also goes to our Joint Coordinator and partner Standard Chartered Bank and all other banks that participated in making this transaction a huge success,” he added.

    “This financing, the sixth international capital raising for BOI, is the largest fundraising in our history and the largest syndication in the history of African development finance institutions. A key constant in achieving this success is the continued support of our international funding partners, including AFC. We are grateful for the unique role that AFC played to make this transaction a success,“ said the Managing Director, BoI,Dr. Olasupo Olusi.

    As part of the syndication, AFC leveraged its A3 (stable outlook) investment-grade rating, recently affirmed by Moody’s, to bring together an international consortium of financial institutions. The transaction aligns with the Corporation’s mission to provide pragmatic solutions that close the continent’s infrastructure gap, accelerate industrialisation, and enhance Africa’s economic resilience against global economic challenges.

  • AFC raises $1.6b loan for infrastructure

    AFC raises $1.6b loan for infrastructure

    The African Finance Corporation (AFC) has raised $1.6 billion syndicated loans for infrastructure.

    The landmark transaction, commemorated at an event in Dubai, is a significant milestone in AFC’s unwavering commitment to develop critical infrastructure projects across the continent by enhancing its financial flexibility and diversifying its investor base.

    Testament to AFC’s appeal in global capital markets and the Corporation’s pivotal role in fostering economic growth and industrialisation in Africa, leading international financial institutions including First Abu Dhabi Bank PJSC, Mashreqbank PSC, MUFG Bank and Standard Chartered collectively acted as Global Coordinators, with the Industrial and Commercial Bank of China (London Branch) acting as China Coordinator. Abu Dhabi Commercial Bank PJSC, Emirates NBD Bank PJSC, Mizuho and Sumitomo Mitsui Banking Corporation acted as Initial Mandated Lead Arrangers and Bookrunners.  Additionally, Bank of China and Société Générale S.A acted as Initial Mandated Lead Arrangers.

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    Initially launched at US$1 billion, the three-year syndicated loan was upsized after being oversubscribed by 49%, underscoring global investor confidence in AFC’s track record, creditworthiness, and its ability to navigate the current economic landscape marked by evolving global complexities. Proceeds from the loan will be deployed to advance AFC’s mission to consistently deliver fast and sustainable solutions to close Africa’s infrastructure gap and unleash the continent’s potential, leading to prosperity for all Africans.

    “The global loan market’s overwhelming interest in Africa’s growth story is evident in the large pool of lenders that supported this syndication, making it AFC’s largest ever,” said AFC’s President & CEO, Samaila Zubairu. ‘’This is a significant endorsement of our commitment to ensure that infrastructure projects support local processing and value capture, thereby providing the much needed impetus to African industrialisation, enhanced export earnings and job creation.’’

    AFC’s position as the pre-eminent partner of choice between African and global stakeholders and investors for mutually beneficial outcomes reflects the Corporation’s relentless dedication to shaping a brighter and prosperous tomorrow for Africa and Africans.

    Financial institutions including Société Générale, Bank Muscat and Intesa Sanpolo Bank Luxembourg S.A. joined the syndicate as first-time lenders, showcasing AFC’s ability to build a global coalition of investors confident in the Corporation’s strong fundamentals as one of the highest investment-grade institutions in Africa.

  • AFC raises $1.6b loan for infrastructure

    AFC raises $1.6b loan for infrastructure

    The African Finance Corporation (AFC) has raised $1.6 billion syndicated loans for infrastructure.

    The landmark transaction, commemorated at an event in Dubai, is a significant milestone in AFC’s unwavering commitment to develop critical infrastructure projects across the continent by enhancing its financial flexibility and diversifying its investor base.

    Testament to AFC’s appeal in global capital markets and the Corporation’s pivotal role in fostering economic growth and industrialisation in Africa, leading international financial institutions including First Abu Dhabi Bank PJSC, Mashreqbank PSC, MUFG Bank and Standard Chartered collectively acted as Global Coordinators, with the Industrial and Commercial Bank of China (London Branch) acting as China Coordinator. Abu Dhabi Commercial Bank PJSC, Emirates NBD Bank PJSC, Mizuho and Sumitomo Mitsui Banking Corporation acted as Initial Mandated Lead Arrangers and Bookrunners.  Additionally, Bank of China and Société Générale S.A acted as Initial Mandated Lead Arrangers.

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    Initially launched at $1 billion, the three-year syndicated loan was upsized after being oversubscribed by 49%, underscoring global investor confidence in AFC’s track record, creditworthiness, and its ability to navigate the current economic landscape marked by evolving global complexities.

  • AFC, Ecobank, Soto Gallery to empower artists

    AFC, Ecobank, Soto Gallery to empower artists

    The Africa Finance Corporation (AFC), the continent’s leading instrumental infrastructure solutions provider, has joined forces with Ecobank Nigeria and Soto Gallery to host the +234Art Fair, a 10-day international exhibition intended as a springboard to promote Africa’s art and its artists.

     The exhibition will display more than a thousand works of art from emerging and “un-galleried” artists starting Friday 22nd March at the Ecobank Pan African Centre (EPAC) on 270 Ozumba Mbadiwe Avenue, Victoria Island, Lagos.

     Announcing the partnership in Lagos, Samaila Zubairu, President & CEO of Africa Finance Corporation, said: “The +234Art Fair aligns with AFC’s advocacy strategy of empowering and elevating Africa’s youthful population, thereby fostering job creation, skills development, value retention and rapid economic growth. We are proud to collaborate with Ecobank to help drive Africa’s creative industry forward by creating a catalyst for promoting African art and artists locally and on the global stage.”

     Commenting, Bolaji Lawal, Managing Director and Regional Executive, Ecobank Nigeria said: “Our shared objective as the pan-African Bank is to project Africa’s creatives, including visual artists, by highlighting and developing talent, and providing a platform and opportunities for artists to showcase their works locally and globally.  All arrangements are in place to make the fair exciting and fulfilling for both the ‘un-galleried’ artists and art enthusiasts across the world. We are so impressed with the interest and enthusiasm generated among young and emerging artists.”

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    Curated by Soto Gallery, one of Africa’s foremost art collections, the collaborative approach by Ecobank and AFC sets out to catalyze the creative sector by enabling emerging artists to achieve recognition and livelihoods, contributing to economic growth through art sales locally and internationally. Alongside showcasing artwork, +234Art Fair will focus on enhancing the creative skills of participating artists through workshops with established local and international artists. A series of discussions between artists, collectors, gallerists, and exhibition visitors will impart critical knowledge of the global art world.

     The exhibition’s title ‘+234Art’ combines Nigeria’s country dialing code with the concept of art to signpost a thorough exposition of what regional art looks like today, and how it interacts with the larger art community across the continent and beyond.

    The thematic direction for the maiden exhibition – ‘A New Heritage’ – reflects the melting pot of artistic creativity from different strata and states, said Tola Akerele, Founder of the Soto Gallery. “In presenting ‘A New Heritage,’ +234Art Fair seeks to connect Nigerian art from the past to the present, fostering a sense of pride and purpose among emerging artists. The event prompts essential questions: What does it mean to be a Nigerian artist? What heritage underlies our artistic practice? How can we celebrate emerging artists, knowing they will contribute to our artistic heritage and legacy in the future?”

  • AFC scales up $1b investments to boost mining in Nigeria, others

    AFC scales up $1b investments to boost mining in Nigeria, others

    Africa Finance Corporation (AFC) has announced several strategic partnerships to boost mining in Nigeria and other African countries.

    Since 2014, AFC has invested over $1 billion in Nigeria and other African countries, mining precious metals and critical minerals across several countries.

    The latest partnerships, announced on the sidelines of the 2024 Mining Indaba conference in Cape Town, will further strengthen the sector by driving significant capital flow into the continent.

    Last year, Thor Explorations Ltd, through its fully owned subsidiary Newstar Minerals Limited, obtained rights to explore over 600 square kilometers in Oyo, Kwara, and Ekiti lithium project areas, highlighting the West Oyo site as home to the nation’s most substantial lithium pegmatite occurrences.

    AFC has signed an expression of interest (EOI) with Thor Exploration for the development of this project, marking the Corporation’s commitment to supporting the establishment of Nigeria’s first large-scale lithium mine. This initiative plays a pivotal role in advancing global energy transition objectives, solidifying Nigeria’s position as a key enabler of renewable energy. AFC is the largest investor in Thor Explorations, investing $86 million towards the Segilola Gold Mine, Nigeria’s first commercial scale gold mine.

    AFC and Solid Mineral Development Fund (SMDF) had in October 2023 commissioned Wood Mackenzie to conduct a comprehensive study to assess the feasibility of establishing a midstream processing plant in Nigeria.

    Wood Mackenzie’s study focused on the viability of processing a number of critical minerals including lithium, cobalt, and manganese. The insight and outcome of the study, revealed at the Mining Indaba in Cape Town, showed that establishing a processing plant in Nigeria will significantly bolster the country’s foreign exchange (forex) generation capacity through significant annual trade volumes and create thousands of local jobs.

    Chief Investment Officer, Africa Finance Corporation (AFC), Sameh Shenouda explained that while over 30 per cent of the world’s minerals are in Africa, less than five per cent of global development funding is invested in African mining projects.

    “Recognizing the significant funding gap in the African mining sector, AFC is committed to pragmatic solutions and supporting the sector’s growth, having invested about $1 billion across metals and critical minerals in several African countries.

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    “Through these strong partnerships with like-minded stakeholders, our goal is to open up new markets, promote a greener economy, and contribute to the overall development of African countries,” Shenouda said.

    AFC signed an EOI with Gécamines, the largest mining company in the Democratic Republic of Congo, to develop certain assets in the mining sector in DRC, including critical minerals. The collaboration will also focus on several initiatives for near-term co-financing of mining and infrastructure related projects for execution by the end of fourth quarter 2024.

    AFC also announced the successful closure of a $55 million mezzanine debt facility for FG Gold Limited, facilitating commencement of construction for the Baomahun Gold Project in Sierra Leone. The project represents a significant milestone as it is poised to become Sierra Leone’s inaugural large-scale commercial gold mine. Upon completion, it is projected to contribute approximately 10 per cent to Sierra Leone’s Gross Domestic Products (GDP) and generate 900 direct and indirect job opportunities within the country.

    This financing builds upon AFC’s previous investment of $45 million in 2022, which played a pivotal role in the extensive development of the project, culminating in the completion of its definitive feasibility study.

    AFC further signed an EOI with Giyani Metals for the financing of a high purity manganese (HPM) mine and plant in Botswana – a rare venture in Africa. HPM is a critical mineral for batteries used by electric vehicles and is central to the overall transition towards a more environmentally friendly global economy. In addition to job creation, Botswana will benefit through diversification in an economy that has largely been dependent on income from diamond exports.

    AFC also announced the launch of the syndication process and executed the senior debt term sheet for Nyanza’s 80,000 tonnes per annum (TPA) TiO2 pigment plant in Richard’s Bay Industrial Development Zone. Valued at $780 million, this sulphate based TiO2 pigment plant will stand as the first and only one of its kind in Africa. The launching of the syndication process follows the successful completion of the project development stage, which AFC co-financed with a $3 million Project Development Facility.

    The plant is strategically positioned to add value to the region’s abundant titanium ore, historically exported without any value addition.

  • Akin-Olugbade bows out at AFC

    Africa Finance Corporation (AFC) has said Dr. Adesegun Akin-Olugbade will be leaving the corporation at the end of his contractual term on December 31, 2018, after 11 years of service to the corporation.

    Akin-Olugbade served as pioneer General Counsel and Corporate Secretary between 2007 and 2008, Executive Director, Corporate Services and General Counsel between 2009 and 2014, and as Executive Director, Chief Operating Officer and General Counsel since 2015.

    A decade after its establishment, AFC has earned an enviable reputation in the infrastructure space internationally.  As a member of AFC’s Executive Committee, Akin-Olugbade, played a key role in the corporation’s adoption of strong corporate governance principles, systems and structures; expansion of AFC’s country membership;  growth of the balance sheet from $1.1 billion to $4.3 billion with operations in 28 African countries, and the attainment of AFC’s investment grade credit rating – all of which have contributed to the success of the institution.

    He has served over 30 years in the legal profession and financial services sector, having worked at both the technical and management levels, in the public and private sector, for leading commercial law firms, development banks and international financial institutions.

    He was previously General Counsel and Director at the African Development Bank (AfDB) and the first Chief Legal Officer and Head of the Legal Services Department of the African Export-Import Bank (Afrexim Bank).

    AFC Chief Executive Officer, Mr  Samaila Zubairu commended Akin-Olugbade for the key role played in the evolution and growth of AFC to being a leading multilateral financial institution on the continent.

    Chairman, AFC, Dr. Okwu Nnanna, also commended Akin-Olugbade for his immense contributions to the board and development of AFC.

    Ms Nana Eshun, AFC’s current Director, Legal, who is a project finance lawyer with over 25 years experience, will assume the role of General Counsel in acting capacity with immediate effect.

     

  • GCF, AFC to drive low-emission development in Africa

    The Green Climate Fund (GCF) will help African countries ramp up their economic growth in ways that do not exacerbate climate change.

    This was said during the signing of an agreement with the Africa Finance Corporation (AFC), last week.

    The two organisations signed an Accreditation Master Agreement (AMA), a prerequisite for all GCF Accredited Entities to implement GCF-approved projects. AFC intends to leverage its partnership with GCF to further its low carbon emission investments in four key sectors: power, transport, heavy industries and telecommunications.

    The Chief Investment Officer of AFC, Oliver Andrews, said during the AMA signing that the consequences of climate change impacts may seriously affect the successful development of Africa’s economy.

    “AFC is, therefore, highly committed to this partnership with GCF. Not only does AFC and the GCF have shared goals, we also have shared values. For example, AFC is committed to investing in post-conflict countries and those that face structural developmental challenges. Equally, the GCF also prioritises societies that are highly vulnerable, in particular the Least Developed Countries (LDCs). As AFC is also driven by a belief in sustainable economic growth, in every sense this synergy is an excellent recipe for success,” Andrews said.

    The Director of GCF’s Country Programming Division, Pa Ousman Jarju, said AFC is well placed to support African entrepreneurs explore the vast potential for economic growth across the continent in ways that do not harm the global environment.

    “GCF activities are aligned with the priorities of developing countries through the principle of country ownership in climate finance. For instance, with the strategic injection of capital, African companies could one day lead the way in generating non-polluting energy for industry and local communities,” he said.

    AFC is financing and managing key infrastructure projects across Africa. It has invested approximately $4 billion in projects across 28 countries in a wide range of sectors including power, telecommunications, transport and logistics, natural resources and heavy industries.

  • AFC: Nigeria needs $3tr to fix infrastructure

    AFC: Nigeria needs $3tr to fix infrastructure

    The Africa Finance Corporation (AFC) has said Nigeria needs $3 trillion to fix huge infrastructure deficit in the country over the next three decades.

    The AFC President/Chief Executive Andrew Alli, who disclosed this at the weekend during a news conference in Lagos, also called on government to allow cost-reflective tariffs so as to boost power supply in the country.

    He regretted that while government must be a primary source of funding, Federal and State Governments’ fiscal inflows are grossly inadequate to match the pace of investments required in infrastructure.

    Represented by a top executive of the corporation, Fowler Fagbule, Alli said the Nigerian government ability to spend is limited based on what it earns.

    Extracts from the Nigeria Economic Recovery & Growth Plan 2017-2020 show that the Federal Government’s medium-term fiscal framework forecasts deficits of N7.6 trillion from 2017 to 2019. This he said, is evidence that the Federal Government resources are limited and additional resources will be needed.

    Specifically, the power sector according to him, recently privatized, is still significantly government driven with challenges of transmission, gas supply, tariffs, payment security, and operational limits which has left the industry in critical state regarding suitability for long-term investment.

    He said the overall effect is that Nigeria still struggles to provide an adequate supply of reliable power to its population of approximately 170 million people, as generation capacity was still about 3,038 megawatts at March, 2017. He believes that the country should generate 5000 megawatts by 2018.

    “If we don’t have a cost reflective tariff, we will not have the kind of investment we want,” he stressed.

    Alli further expressed concern that despite its recent unbundling, “This industry is at a critical juncture in terms of privatization, liberalization and other conditions for long-term investment sustainability, both by public sector and private financiers. Both the public and private sides have fallen short of requirements to create a bankable and sustainable sector. ”

    Similarly, he said the transport sector is largely public financed (FGN) hence limited by annual fiscal constraints. The end result in Nigeria Alli added is that roads and rail typically get the most attention, but funding is “poor and opaque.”

    Arguing  that money is not the problem of infrastructure financing, Alli said other challenges that need to be addressed include: bad Procurement processes, structural problems that make it difficult for investors to get value for money, funding structure, maintenance, tolling, among others. He also, frowns at inadequate attention which Nigeria pays to meeting the needs of specific investors and projects already in progress, or on creating policy incentives that will spur investments.

    “Even though the Country has proven gas reserves greater than oil reserves and world class deposits of tin, substantial iron ore and coal resources, unfavorable policies around pricing and access to acreage have limited infrastructure investment and development for several decades in Nigeria,” said the AFC boss.

    In proffering solution to poor infrastructure financing, the AFC president said there should be major overhaul in approach, for large ticket billion-dollar projects to work.

    Referring to the electricity sector, he said strict enforcement of all agreement by all parties to a contract is important. He however praised the Federal Government for decentralisation of the Nigerian ports via private sector concessions, which he said has allowed for planning and developing of port infrastructure and facilitation of financing for new construction through build-operate-transfer arrangement.

    Alli said despite significant demand for rail transportation, traffic volumes have collapsed to almost zero due to lack of maintenance and capital expansion.

  • AFC issues $500m Eurobond

    The Africa Finance Corporation (AFC) has issued a $500 million seven-year Eurobond. The senior, unsecured Eurobond which carries a coupon of 3.875 per cent was priced to yield 4.000 per cent and matures in April 2024.

    The Eurobond received strong global interest, with an order book of $2.4 billion, representing about five times over-subscription from 231 investors across the Middle East, Asia, the United Kingdom, Europe and the United States (U.S.). Prior to the launch of the bond, AFC conducted a roadshow in London, Hong Kong, Singapore, the United Arab Republic (UAE), and the U.S.

    The bond is AFC’s second benchmark Eurobond issuance under the Corporation’s $3billion Global Medium Term Note Programme. The bond was rated A3 by Moody’s Investor Services which is in line with AFC’s issuer rating.