AFC Secures $300M India-Focused Loan to Propel African Infrastructure Growth

Bank of Africa UK PLC (BOA UK) served as the sole mandated lead arranger and bookrunner, bringing together a syndicate of seven prominent Indian banks.

The Africa Finance Corporation (AFC), a leading infrastructure solutions provider in Africa, has successfully closed a US$300 million syndicated loan, marking a milestone in its efforts to diversify its global investor base and strengthen ties with Indian financial institutions. This transaction, oversubscribed by 50%, introduced five new Indian lenders to AFC’s investment portfolio, further broadening its global partnerships.

The syndicated loan was commemorated during a high-profile event in Dubai, where AFC underscored its position as an A3 investment-grade rated institution, reaffirmed by Moody's with a stable outlook. Bank of Africa UK PLC (BOA UK) served as the sole mandated lead arranger and bookrunner, bringing together a syndicate of seven prominent Indian banks.

Expanding Indian Partnerships for African Development

The participating lenders include State Bank of India, Canara Bank, Bank of India, Indian Bank, UCO Bank, and two returning institutions, SBI (Mauritius) and Indian Overseas Bank. This transaction marks the first foray into African investments for many Indian lenders, showcasing their growing confidence in AFC’s ability to drive transformative infrastructure projects.

“This historic partnership with Indian debt markets exemplifies AFC’s dedication to diversifying its international investor base,” stated Banji Fehintola, Executive Board Member and Head of Financial Services at AFC. He added, “Through such collaborations, we mobilize global capital to deliver high-impact initiatives, fostering sustainable economic resilience and growth across Africa.”

AFC’s Fundraising Momentum in 2024

The $300 million syndicated loan adds to AFC’s stellar fundraising performance in 2024, which includes a US$1.16 billion debt facility attracting investors from the Middle East, Europe, and Asia. These successes are underpinned by AFC’s robust credit profile, strategic positioning in global markets, and its capacity to mobilize capital for transformative projects.

A New Era in India-Africa Financial Cooperation

The transaction reflects AFC's ability to navigate the unique requirements of Indian lenders. Zineb Tamtaoui, General Manager, Bank of Africa SA, DIFC Branch, commented, “Indian lenders are distinct in their approach, and we are proud to have leveraged our expertise to execute this landmark deal.”

This milestone aligns with India’s growing interest in African markets. By entering previously unexplored geographies, AFC demonstrates the continent’s potential to attract diverse global investors. “This transaction signals strong appetite for Africa risk in new lender geographies like India,” said Adren, Chief Executive Officer, Bank of Africa UK PLC. “We hope this paves the way for increased capital inflows into Africa.”

Transformative Impact on African Infrastructure

The funds raised will be channeled into high-impact projects across Africa, supporting sustainable growth and economic resilience. AFC continues to prioritize initiatives in energy, transport, telecommunications, and industrial development, unlocking Africa’s potential while addressing infrastructure deficits.

With over $10 billion invested across 37 African countries since its inception, AFC’s leadership in the infrastructure space has catalyzed economic transformation. This latest transaction strengthens its ability to mobilize resources for long-term development goals.

Looking Ahead

As AFC deepens its relationships with Indian lenders and other international investors, its diversified funding strategy positions it as a key player in addressing Africa’s infrastructure challenges. The Corporation remains committed to delivering innovative solutions that foster inclusive and sustainable growth across the continent.

The collaboration with Indian banks not only highlights AFC’s global reach but also reinforces the growing synergy between India and Africa, promising a future of shared economic prosperity and development.