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.
Notes to Editors
About AFC – www.africafc.org
AFC, an investment grade multilateral finance institution, was established in 2007 with an equity capital base of US$1.1 billion, to be the catalyst for private sector-led infrastructure investment across Africa. With a current balance sheet of approximately US$6.6 billion, AFC is the second highest investment grade rated multilateral financial institution in Africa with an A3/P2 (negative outlook) rating from Moody’s Investors Service. AFC successfully raised US$700 Million in 2020, US$1,150 billion (US$650 million and US$500 million) in 2019, US$500 million in 2017 and US$750 million in 2015 through Eurobond issuances; out of its Board-approved US$5 Billion Global Medium-Term Note (MTN) Programme. All Eurobond issues were oversubscribed and attracted investors from Asia, Europe and the USA.
AFC’s investment 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. AFC invests in high-quality infrastructure assets that provide essential services in the core infrastructure sectors of power, natural resources, heavy industry, transport, and telecommunications. To date, the Corporation has invested over US$8.4billion in projects within 35 countries across Africa.
Follow us on Twitter – @africa_finance
Senior Vice President, Communications
Tel: + 234 1 279 9600
Bobby Morse / Augustine Chipungu
Tel: +44 20 7466 5000