The Africa Finance Corporation (AFC) said it had sealed a $50 million bilateral loan deal with Rand Merchant Bank (RMB), a division of First Rand Bank Limited

AFC said in a statement Thursday the deal further enhanced its medium term funding program.

It stated that the corporation is 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.

"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," the corporation said.

Commenting on the development, President/Chief Executive Officer, AFC, Mr. Andrew Alli 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, Co-Head of RMB Investment Banking, Rob Hamer, noted that by concluding the "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 is an African-led international financial institution, established in 2007 whose mission is to improve African economies by proactively developing and financing infrastructure, industrial and financial assets.

AFC is involved as a developer and financier of various infrastructure projects.

On the other hand, RMB 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. The firm recently secured a Merchant Banking license in Nigeria.