Africa Finance Corporation secures inaugural AED937.5mln sustainability-linked loan backed by United Arab Emirates (UAE) Banks
The AED 937.50 million (US$255 million) facility reflects AFC's commitment to use financial innovation tools to optimise funding for transformative infrastructure. Along with further expanding AFC's geographical funding base, the transaction aligns future borrowing costs with measurable environmental outcomes through predefined Sustainability Performance Targets (SPTs). The structure allows AFC to benefit from reduced loan costs upon achieving key sustainability targets, signaling to investors and stakeholders the importance of environmental responsibility to its infrastructure investment mandate.
The loan facility was anchored by a syndicate of prominent UAE-based financial institutions. Abu Dhabi Commercial Bank PJSC, Emirates NBD Capital Limited, First Abu Dhabi Bank PJSC, Mashreqbank PSC, and the National Bank of Ras Al Khaimah (P.S.C.) acted as Initial Mandated Lead Arrangers and Bookrunners (IMLABs). Mashreqbank PSC additionally served as Global Coordinator and Documentation Agent, while First Abu Dhabi Bank PJSC acted as Sustainability Coordinator and Emirates NBD Bank (P.J.S.C.) acted as the Facility Agent.
'This facility represents a key milestone in AFC's journey,' said Banji Fehintola, Executive Board Member & Head, Financial Services, AFC. 'By tapping the UAE Dirham market and embedding sustainability performance into our funding terms, we are not only diversifying our funding sources but also aligning our financing strategy with our mission to catalyse infrastructure-driven economic growth and industrial development across Africa. This transaction is a testament to the strength of our partnerships in the UAE and our continued commitment to sustainable infrastructure development across Africa.'
This facility builds on AFC's strong momentum in diversified and sustainable capital raising. Following a record US$1.16 billion syndicated loan in 2024, AFC debuted a US$500 million hybrid capital issuance and a US$400 million Murabaha facility in 2025. The Corporation also expanded its climate finance instruments - having issued a CHF150 million Green Bond in 2020, and in 2024, pioneering Green Shares with a US$30 million equity investment from the African Development Bank. These efforts complement AFC's strategic stake in Lekela Power, through Infinity, forming Africa's largest renewable energy platform with over 1 GW of clean power capacity, reaching 1.2 million homes and avoiding 7.9 million tonnes of CO₂ emissions annually.
Distributed by APO Group on behalf of Africa Finance Corporation (AFC).
About AFC:
AFC was established in 2007 to be the catalyst for pragmatic infrastructure and industrial investments across Africa. AFC's approach combines specialist industry expertise with a focus on financial and technical advisory, project structuring, project development, and risk capital to address Africa's infrastructure development needs and drive sustainable economic growth.
Eighteen years on, AFC has developed a track record as the partner of choice in Africa for investing and delivering on instrumental, high-quality infrastructure assets that provide essential services in the core infrastructure sectors of power, natural resources, heavy industry, transport, and telecommunications. AFC has 45 member countries and has invested over US$15 billion in 36 African countries since its inception.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Gulf Business
23 minutes ago
- Gulf Business
Dubai's Emirates NBD half-year profit dips 9%, hit by tax, lower recoveries
Image credit: Getty Images Emirates NBD, Dubai's biggest bank by assets, reported on Thursday a 9 per cent fall in its first-half net profit, as lower recoveries and a new higher tax rate impacted the lender's results. The bank posted a net profit of Dhs12.5bn ($3.40bn) in the six months to June 30, down from Dhs13.8bn over the same period in 2024. Read- ENBD, majority-owned by Dubai's government, said recoveries in the first half of 2025 were down by Dhs2bn, which compared with 'very strong recoveries' last year, the bank said in a statement. UAE banks have been benefitting from steady economic growth, rising demand for credit and government-driven investment in non-oil sectors in recent years. In Dubai, the Gulf's tourism and financial hub, a business-friendly environment has attracted a slew of companies and high-net-worth clients, contributing to a spike in real estate prices. However, Ratings agency Fitch expects a correction in real estate prices in the second half and in 2026, as new builds come to the market, it said in May. ENBD's total assets reached Dhs1.09tn as of end-June, up 17 per cent from a year earlier, with both net interest income and non-funded income rising by double digits. The bank's total gross loans rose 12 per cent to Dhs570bn in the first six months, with nearly half of the increase coming from international operations. They were outpaced by deposits, which grew 18 per cent to Dhs737bn. Its net interest margin dropped to 3.47 per cent at the end of June, its lowest since 2022, impacted in the second quarter by a rate hike in Turkey, where ENBD operates through its unit DenizBank.
UAE Moments
23 minutes ago
- UAE Moments
UAE Banks to Stop SMS and Email OTPs From July 25
In a big move to boost digital banking security, UAE banks will start phasing out one-time passwords (OTPs) sent via SMS and email starting Friday, July 25. Join our FREE WhatsApp channel to dive into a world of real-time engagement! This change comes under new guidelines issued by the UAE Central Bank, which requires all banks to shift to app-based authentication for both local and international financial transactions. Why the change? SMS and email OTPs have been widely used for years, but they've also become common targets for cybercriminals using techniques like SIM swapping and phishing. Switching to in-app verification adds an extra layer of security by keeping the authentication process within your bank's secure mobile app. What this means for you: Instead of waiting for a code to arrive by text or email, you'll now confirm transactions through your bank's mobile app using fingerprint, face ID, or a secure push notification. A bank spokesperson explained: 'As per the directives issued by the UAE Central Bank, the practice of receiving OTPs via SMS or email will be phased out. Customers can now complete online transactions easily by selecting the 'Authentication via App' feature in their bank's smart application.' Full phase-out by March 2026 The change won't happen overnight. Banks will roll out the transition gradually, with the goal of completely stopping SMS and email OTPs by March 2026. Until then, some customers may still receive OTPs the old way — but it's only temporary. Banks are encouraging users to update their apps and get comfortable with in-app authentication as soon as possible. Part of the UAE's digital transformation This move is part of the country's broader push to modernise its financial systems and make online banking safer and smoother for everyone.
Gulf Business
23 minutes ago
- Gulf Business
Hala taxi trips in Dubai up 12%, users increase by 10% in H1 2025
Image: Hala/ RTA Taxi trips in Dubai rose 12 per cent year-on-year in H1, while active users increased by 10 per cent, the company said in a statement. In The company expanded its fleet by 250 vehicles in the first half and plans to add another 600 by year-end. Hala also introduced four new electric vehicles and reported that 90 per cent of its total fleet is now hybrid. EV trips helped avoid an estimated 272.61 metric tonnes of carbon dioxide equivalent (CO₂e) during the period. Customer satisfaction held steady at 4.9 out of 5, with 98 per cent of trips rated 'Good' or higher. Hala maintained an average ETA of under three minutes in peak zones and recorded a 93 per cent trip fulfilment rate. Low-rated trips (1–3 stars) fell by 25 per cent, customer contact rates dropped 13 per cent, and cancellations were down 17 per cent. Hala: New drivers, sustainable scaling To support growth, over 2,600 new drivers – known as 'captains' – were onboarded and trained in H1, while more than 6,000 existing captains completed refresher training. Hala also rolled out several service enhancements, including upgraded hygiene protocols and a new in-car scent experience developed with fragrance brand Rituals. CEO Khaled Nuseibeh said the results reflect 'continuous improvement and sustainable scaling' across Hala's operations. 'Whether it's through Captain Care, listening to our riders, or investing in greener mobility, we are scaling in a way that is sustainable, responsive, and responsible,' he said. Hala operates through the Careem app and serves as a major player in Dubai and Ras Al Khaimah's public transport network. The company said it remains focused on expanding tech-enabled, low-emission transport options in line with broader urban mobility and climate goals. A cornerstone of Hala's growth is its emphasis on the well-being of its captains, who benefit from ongoing development opportunities such as regular training on safety, tech, and service standards, alongside support mechanisms for physical and mental well-being. Top-performing captains are regularly recognised and rewarded, while flexible scheduling options and financial support programmes are in place to help them balance their personal and professional lives. As demand for tech-enabled, reliable transport continues to grow, Hala remains focused on delivering measurable impact across convenience, service quality, and environmental responsibility. Integrated within the Careem app, Hala continues to play a key role in strengthening urban mobility in Dubai and Ras Al Khaimah.
