Lagos — Nigerian-based Africa Finance Corporation, AFC, has secured a N8 billion (US$50 million) bi-lateral loan facility from Rand Merchant Bank, RMB, to finance critical infrastructural projects in Nigeria and across the African continent.
According to a statement by the AFC, the facility will further enhance its medium term funding programme
Commenting on the deal, Mr. Andrew Alli, President and Chief Executive Officer, AFC, said the African-led financial institution was continuously leveraging its balance sheet to fund further investments in the development of critical infrastructure in the power, natural resources, transport, heavy industry and telecommunications sectors across Africa.
He said: "This bilateral facility further consolidates AFC's international borrowing strategy, and demonstrates the institution's growing capacity to raise finance competitively, for infrastructure projects within Africa."
Also, Rob Hamer, Co-Head, RMB Investment Banking, said: "By concluding this mutually beneficial US dollar term loan facility to AFC, RMB has successfully implemented its strategy to expand its services into Africa and become a leading financier of African infrastructure, trade and development banks.
"RMB looks forward to an ongoing partnership and co-operation with AFC across the African continent."
AFC was established in 2007 to improve African economies by proactively developing and financing infrastructure, industrial and financial assets.
Alli said AFC was involved as a developer and financier of various infrastructure projects, adding that the additional borrowing in the international loan markets adds to the financing that AFC has already completed with development finance and other commercial institutions and consolidates its position as a destination for cross border financing in Africa.
RMB, on the other hand, is the investment banking arm of FirstRand Bank Limited.
The FirstRand Group is the largest listed banking group (by market capitalisation) on the Johannesburg Stock Exchange, having geographical footprint across 35 African countries, the UK, India, China, and the Middle East and offers advisory, funding, trading, private wealth management and principal investing solutions.