Africa Finance Corporation (AFC) has successfully raised a record $2 billion syndicated loan, marking the largest syndicated financing transaction in the institution’s history and highlighting strong international investor confidence in Africa’s long-term infrastructure growth story. The facility was upsized from an initial target of $1.6 billion following strong demand from global lenders.
According to AFC, the financing attracted broad participation from banks across multiple regions, with lenders from Asia-Pacific and Europe each accounting for 35% of commitments, followed by the Middle East at 25% and Africa at 5%. The transaction was completed despite ongoing geopolitical tensions and volatility in global financial markets.
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The proceeds will be used to support AFC’s growing pipeline of infrastructure and industrial projects across the continent. The corporation said the funding will be directed toward critical sectors including energy, transportation, logistics, telecommunications, and industrial development, which are considered key enablers of trade, job creation, and economic transformation in Africa.
The landmark fundraising comes amid growing recognition of AFC’s credit strength. Earlier this year, S&P Global Ratings assigned AFC an ‘A’ long-term credit rating with a positive outlook, complementing the investment-grade ratings already maintained by Moody’s and the Japan Credit Rating Agency (JCR). These ratings have helped strengthen the corporation’s access to international capital markets and attract a broader pool of investors.
Established in 2007, AFC has emerged as one of Africa’s leading infrastructure financiers and developers. The institution now counts 48 African member countries and has invested more than $19 billion across 36 countries, supporting projects in power generation, transport networks, telecommunications, natural resources, and heavy industry.
The syndicated facility was arranged by a consortium of international financial institutions, including Barclays, Commerzbank, First Abu Dhabi Bank, and FirstRand Bank through its investment banking arm, Rand Merchant Bank, among others.
The successful fundraising underscores increasing investor appetite for African infrastructure assets and provides AFC with additional firepower as it expands its role in financing major projects across the continent, including transport corridors, energy infrastructure, and industrial development initiatives. AFC recently announced plans to establish its first regional office outside Lagos in Nairobi as part of its broader continental expansion strategy.
