TOKYO, Japan, September 2, 2019, -/African Media Agency (AMA)/- Africa Finance Corporation ("AFC" or "the Group"), Africa's leading provider of high-quality infrastructure solutions, announces the closing of the general syndication of a two-currency samurai term credit facility (the "Facility") with MUFG Bank, Ltd. ("MUFG") and Sumitomo Mitsui Banking Corporation ("SMBC"), acting as mandated lead arranger and bookrunner.

The Facility, consisting of two tranches, with the two tranches (Tranche A denominated in USD and Tranche B in JPY) having a maturity of 3 years each (repayment in fine), is the first credit facility of the AFC denominated in Asian currencies. This is an important step as the Group is building a broad alliance of investors to diversify its funds and enable institutions around the world to participate in Africa's development.

The transaction was very well received in the Japanese loan market, resulting in significant oversubscription. The Facility will be increased accordingly. The proceeds of the Facility will be used for the general purposes of the business, in accordance with the FTA Foundation Agreement and the Charter.

Samaila Zubairu, President and CEO of AFC, commented: "Since joining AFC, one of my main goals has been to build a large alliance of international investors. Obtaining this credit facility brings us a little closer to this goal. The considerable interest of the Japanese loan market for the Facility, which has resulted in its oversubscription, allows us to diversify our sources of financing and underpins our mandate to provide solutions to the infrastructure deficit in Africa.

"Asia is the key to African growth. Japan, in particular, is an important player whose core principles – quality growth that addresses inclusion, sustainability and resilience, as well as personal safety, with a focus on capacity building – are fully aligned with AFC's mission and vision."

The Facility was the subject of a general syndication on 23 July 2019. The signing of the loan agreement is scheduled for September 2, 2019.

AFC, a leading multilateral financial institution, was established in 2007 with a US$1 billion equity base, with the aim of catalyzing private sector investment in infrastructure across Africa. With a current balance sheet of about $4.5 billion, AFC is the continent's second largest multilateral investment financial institution. Moody's investor service gave it an A3/P2 rating (stable outlook). AFC successfully raised US$750 million in 2015 and US$500 million in 2017; beyond its global medium-term impact (MTN) programme of us$3 billion approved by the Board of Directors. Both Eurobond issues were oversubscribed and attracted investors from Asia, Europe and the United States.

AFC's investment policy is based on in-depth knowledge of the sector, but also focuses on financial and technical advice, project structuring and development, and venture capital, in order to meet Africa's infrastructure development needs and ensure sustainable economic growth. AFC invests in high-quality infrastructure that provides essential services in key sectors of energy, natural resources, heavy industry, transport and telecommunications. To date, AFC has invested more than US$4 billion in projects in 28 countries in North, East, West and South Africa.