AFC Closes Japanese Loan Deal as Group Moves Towards Building a Broad Coalition of International Investors

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The Africa Finance Corporation (AFC), Africa’s leading investment-grade infrastructure solutions provider, has announced the successful closure of a deal that raised $233 million and JPY 1 billion.

The Facility includes two tranches, US$-denominated Tranche A and JPY-denominated Tranche B, which carry a tenor of three years each. The deal is AFC’s first Asian-currency denominated loan facility.

The AFC described the deal as an important step as the Corporation “builds a broad coalition of investors to diversify its funds and allow institutions from around the globe to participate in Africa’s development.”

The fundraiser was well received in the Japanese loan market leading to the issue being significantly over-subscribed. This is the largest debut Samurai Loan by an African issuer.

A samurai loan is a yen-denominated bond issued in Tokyo by non-Japanese companies and is subject to Japanese regulations. These bonds provide the issuer with access to the Japanese capital, which can be used for local investments or for financing operations outside Japan.

The facility was signed on 6th September 2019 with eight Japanese lenders committing to the Facility. The Facility launched into general syndication on 23 July 2019 at a launch amount of US$ 150 million.

Proceeds from the Facility will be used for general corporate purposes.

“The market’s keen interest in participating in AFC’s clearly defined African growth strategy is demonstrated by the wide pool of lenders that supported the syndication,” commented Samaila Zubairu, President and CEO of the AFC.

“The success of this loan offering is a testament to AFC’s ability to diversify our funding sources as we build a coalition of investors to support our mandate of providing solutions to Africa’s infrastructure deficit as well as to our strong fundamentals as an investment-grade institution,” Zubairu concluded.

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