4 UAE Banks Secure Dh4.25bn Syndicated Loan for Africa

Four UAE banks collaborated with Africa Finance Corporation (AFC), the prominent infrastructure solutions provider in Africa, to raise a substantial $1.16 billion (Dh4.25 billion) syndicated loan. This collaboration underscores the commitment of UAE financial institutions to support economic development in Africa.

AFC, in addition to UAE banks, signed agreements with lenders from Europe and Asia, broadening its international financial network. Notable global coordinators include First Abu Dhabi Bank (FAB), Mashreqbank, MUFG Bank, and Standard Chartered, with the Industrial and Commercial Bank of China (London Branch) acting as the China coordinator.

Among the initial mandated lead arrangers and bookrunners were Abu Dhabi Commercial Bank (ADCB), Emirates NBD Bank, Mizuho, and Sumitomo Mitsui Banking Corporation. Furthermore, Bank of China and Société Générale S.A. played roles as initial mandated lead arrangers.

AFC's syndicated loan, initially launched at $1 billion, experienced a remarkable oversubscription of 49%, highlighting the strong confidence of global investors in AFC's creditworthiness and its capacity to navigate the complex economic landscape. The proceeds from the loan will be dedicated to addressing Africa's infrastructure deficit, unlocking the continent's potential for economic growth, and fostering prosperity for its people.

According to Samaila Zubairu, AFC's president and CEO, the overwhelming interest from the global capital market in Africa's growth narrative is evident in the successful syndication of the loan. This loan represents AFC's largest to date and demonstrates its dedication to driving African industrialization, boosting exports, and creating employment opportunities.

In a separate development, AFC, in collaboration with SkyPower Global, inked a deal to establish a 200MW clean energy plant in the Democratic Republic of Congo (DR Congo). This initiative, known as the DRC Green Giant project, will be implemented in four phases, with the first phase costing $200 million (Dh734 million) and creating 6,000 job years. The project aims to contribute to the country's energy transition and economic development.

Previously, in 2023, AFC secured a $625 million syndicated loan, its second-largest, primarily from lenders in the Middle East and Asia, further demonstrating its ability to attract international financing to support Africa's infrastructure needs.

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