Africa Finance Corporation wins $255mln green loan backed by UAE banks
The AED937.50 million ($255 million) facility reflects AFC's commitment to use financial innovation tools to optimise funding for transformative infrastructure, AFC said.
The loan facility was anchored by a syndicate of prominent UAE-based financial institutions. Abu Dhabi Commercial Bank, Emirates NBD Capital Limited, First Abu Dhabi Bank, Mashreqbank, and the National Bank of Ras Al Khaimah acted as Initial Mandated Lead Arrangers and Bookrunners (IMLABs). Mashreqbank additionally served as Global Coordinator and Documentation Agent, while First Abu Dhabi Bank acted as Sustainability Coordinator and Emirates NBD Bank acted as the Facility Agent.
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), AFC said.
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.
'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 $1.16 billion syndicated loan in 2024, AFC debuted a $500 million hybrid capital issuance and a $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 $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). - TradeArabia News Service
Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).
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