AFC secures  $255M  loan to power Africa’s green infrastructure

The Africa Finance Corporation (AFC) has secured $255 million facility from a consortium of banks in the United Arab Emirates region, signaling a bold turn in green capital on the continent. The deal  marks AFC’s first entry into the UAE Dirham loan market. 

“This facility represents a key milestone in AFC’s journey,” said Banji Fehintola, Executive Board Member and Head of Financial Services at 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.”

The structure hinges on Sustainability Performance Targets (SPTs)—metrics that, once achieved, allows theAFC to unlock lower borrowing costs. This mechanism sends a strong signal to investors signalling the importance of environmental responsibility 

The facility was orchestrated by a lineup of UAE financial institutions. Abu Dhabi Commercial Bank, Emirates NBD Capital, First Abu Dhabi Bank, Mashreqbank, and the National Bank of Ras Al Khaimah led the transaction as Initial Mandated Lead Arrangers and Bookrunners. Mashreqbank doubled as the Global Coordinator and Documentation Agent, while First Abu Dhabi Bank served as the Sustainability Coordinator and Emirates NBD as the Facility Agent.

This fund builds on AFC’s streak of ambitious funding milestones. In the last 18 months alone, the corporation closed a record US$1.16 billion syndicated loan, debuted a $500 million hybrid capital issuance, and inked a $400 million Murabaha facility. On the green finance front, it has pushed boundaries with instruments like the CHF150 million green bond in 2020 and a first-of-its-kind $30 million green shares deal with the African Development Bank.

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With the UAE increasingly positioning itself as a climate finance hub, this deal underscores a growing financial symbiosis between Africa and the Gulf.