Continental sustainable infrastructure and industrial development bank Africa Finance Corporation (AFC) has reported that it has secured its largest Samurai loan facility to date. The syndicated facility is dual currency, composed of $505-million and ¥3-billion (the total being equivalent to $524-million), has been significantly oversubscribed, and has a term of three years. The proceeds from this facility will be used for general corporate purposes, to support the AFC’s mandate.

“Japan continues to be an important and strategic market for AFC,” highlighted AFC executive board member and financial services head Banji Fehintola. “The strong support from Japanese lenders in our latest Samurai loan underscores the depth of confidence in AFC and the trust we have built with investors over the past few years. This successful transaction strengthens our funding base and expands our global investor reach as we continue mobilising capital to address the infrastructure deficit in Africa.”

The mandated lead arrangers and bookrunners for the facility are banks with which the AFC has long-standing relationships, namely Mizuho Bank, MUFG Bank, and SMBC Bank International. But the facility also sees new lenders to the AFC, from Taiwan, China and Japan. These include the Bank of Taiwan, the China Construction Bank Corporation, the Taiwan-based First Commercial Bank, the Taiwan Business Bank, the Chiba Bank, the Shizuoka Bank and the Yamanashi Chuo Bank.

The transaction benefitted from, AFC reported, the strong momentum it built from its lenders’ roadshow in Japan. This took place during the ninth Tokyo International Conference on African Development, in August.

AFC secured its first Samurai loan in 2019. In 2023, AFC guaranteed Egypt’s ¥75-billion Samurai Bond. Earlier this year, AFC was awarded an A+ (Stable) long-term issuer credit rating by the Japan Credit Rating Agency. AFC’s 2022 Samurai facility matured in October last year; it had a value of $412-million and ¥1-billion (equivalent to $419-million in total) and was fully repaid.

AFC has kept a strong presence in capital markets across Asia. Over the past decade, it has raised more than $1.3-billion from Chinese, Indian and Korean loan facilities.