Africa Finance Corporation (AFC), today announced that it has successfully secured a US$250 million tier-2 capital loan from U.S. International Development Finance Corporation (DFC).
Formed in December 2019, DFC is the United States Government’s development bank established with a lending capacity of up to US$60 billion to provide financing for solutions to some of the most critical challenges facing the developing world. DFC expanded and modernized the tools of the Overseas Private Investment Corporation (OPIC).
The facility to AFC, which consists of a US$250 million tier-2 capital loan, will strengthen AFC’s investment capacity by enabling it to provide competitive financing solutions for closing Africa’s infrastructure deficit. It also further complements AFC’s strategy of diversifying its investor base.
Samaila Zubairu, President & CEO of Africa Finance Corporation, commented on the announcement: “Africa and the United States have enjoyed a longstanding partnership spanning several decades. Indeed, AFC has partnered with the US on several infrastructure initiatives, including the Power Africa initiative, and regularly receives investments from US-based investors in its Eurobond issuances.”
“This announcement therefore marks a natural evolution as the US Government seeks to play a greater role in Africa’s development by establishing a dedicated DFI. Crucially, this funding will also ensure the Corporation is able to continue fulfilling its objectives in the wake of the ongoing COVID-19 pandemic, which has placed a greater responsibility on development finance institutions in helping to drive a sustainable recovery across Africa.”
Adam Boehler, CEO of DFC also commented on the announcement: “DFC is proud to expand our relationship with a key infrastructure investor in Africa. This financing advances DFC’s strong commitment to Africa by supporting investment in the modern infrastructure that is essential to economic growth and expanded connectivity with the world.