African infrastructure funding specialist, the Africa Finance Corporation (AFC), announced on Tuesday that it had successfully closed its largest ever debt facility. This is a $1.16-billion syndicated loan, which had attracted new lenders from Asia, Europe and the Middle East.

The AFC’s target had been $1-billion, but the facility had been upsized because it had been oversubscribed by 49%. The syndicated loan has a period of three years, and its success highlights the confidence of global investors in the AFC.

“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 the AFC’s largest ever,” highlighted AFC president and 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.”

The AFC’s previous largest (now second largest) syndicated loan, worth $625-million, was closed only last year. That was backed mainly by Middle Eastern and Asian lenders. Last year also saw the AFC secure a long-term credit line, worth $350-million, from the African Development Bank, and a loan facility from Italy’s development finance bank, the Cassa Depositi e Prestiti, worth €50-million, as well as a loan from the Exim Bank of China, worth $400-million.

The global coordinators for this latest, and largest, syndicated loan were First Abu Dhabi Bank, Mashreqbank, MUFG Bank and Standard Chartered Bank, working together. The coordinator for China was the Industrial and Commercial Bank of China (London branch). The Initial mandated lead arrangers were the Bank of China and Société Générale. The initial mandated lead arrangers and bookrunners were Abu Dhabi Commercial Bank, Emirates NBD Bank, Mizuho Bank and Sumitomo Mitsui Banking Corporation. Among the new lenders were Société Générale, Bank Muscat and Intesa Sanpolo Bank Luxembourg.

“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,” assured the corporation, in its statement. “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.”