Africa Finance Corporation receives $100m loan from India Exim Bank to boost post-Covid recovery
Lagos, Nigeria–(BUSINESS WIRE)–Africa Finance Corporation (AFC), the continent’s leading infrastructure solutions provider, has received a US$100 million line of credit from the Export-Import Bank of India (India Exim Bank) to develop critical infrastructure needed to rebuild African economies in the wake of the Covid-19 pandemic.
Proceeds from the 10-year loan will support AFC’s ongoing mission to close Africa’s infrastructure gap and drive the sustainable economic growth the continent urgently needs. India Exim Bank, India’s sovereign export credit agency, has actively sought opportunities to co-finance projects in Africa through lines of credit to support infrastructure development. AFC draws capital from a wide range of international investors and lenders as part of its strategy to maintain Africa’s second highest investment grade credit rating.
“As part of our mandate, India Exim Bank continues to foster a network of alliances and institutional links with multilateral agencies like Africa Finance Corporation, which have a strong credit profile and are at the forefront of the changing development landscape in Africa,” said Harsha. Bangari, deputy managing director of India Exim Bank. “We look forward to expanding the relationship between our institutions for the economic benefit of Africa.”
India Exim Bank provides lines of credit to national governments, regional financial institutions, commercial banks and other foreign entities as part of its global partnership development strategy.
AFC President and CEO, Samaila Zubairu said, “The Covid-19 pandemic has set back Africa’s growth trajectory and compounded its development challenges. At AFC, we continue to execute on our mandate to meet Africa’s infrastructure needs, working with leading development partners such as India Exim Bank. These strategic partnerships help mobilize the capital urgently needed to rebuild Africa after the pandemic, with more resilient and sustainable infrastructure in key sectors, including renewable energy, transport and telecommunications.
In June 2021, Africa Finance Corporation received a credit ratings boost from Moody’s Investors Service, which raised its A3 rating outlook to “stable”. The Company’s unique access to global capital markets drives development, integrates African economies and transforms lives on the continent. Ends
AFC was established in 2007 to catalyze private sector-led infrastructure investment across Africa. It is the second highest rated multilateral financial institution in Africa. AFC’s approach combines specialist sector expertise with a focus on financial and technical advisory, project structuring, project development and venture capital to meet Africa’s infrastructure development needs and drive a sustainable economic growth. AFC invests in high-quality infrastructure assets that provide essential services in the basic infrastructure sectors of energy, natural resources, heavy industry, transportation and telecommunications. The Company has invested over US$8.7 billion in projects in 35 countries in Africa since its inception.
About India Exim Bank
India Exim Bank was established in 1982 by an Act of Parliament and is wholly owned by the Government of India. It is the main financial institution for coordinating the operation of institutions engaged in the financing of exports and imports. India Exim Bank has over the years played a catalytic role in facilitating India’s integration into the global economy by promoting, financing and facilitating India’s international trade and investment. The Bank’s range of programs have helped Indian companies become competitive and develop a global presence.