A $389 million Samurai dual currency term loan facility of $382 million and JPY 1 billion has been arranged by the multilateral development finance institution. Mizuho Bank, MUFG Bank, and Sumitomo Mitsui Banking Corporation (SMBC), Japanese investors, coordinated the AFC issuance.
Additionally, the Bank of Yokohama, Norinchukin Bank, Shiga Bank, and Gunma Bank underwrote the issue. In an effort to challenge China’s influence in Africa, these financial institutions are responding to Japan’s new strategy of stepping up its investments there. This commitment was reaffirmed at the 8th Tokyo International Conference on African Development (Ticad-8) in Tunisia, where Japan reaffirmed its willingness to invest in key sectors related to sustainable development in Africa, including renewable energy, sustainable cities, and access to drinking water.
“Asia is a very important region for us, and the participation of Asian investors in our bond issues has increased significantly over time,” says Banji Fehintola, AFC’s Senior Director and Treasurer. The Lagos-based financial institution is diversifying its partners to accelerate its investments in several sectors, including renewable energy.
Recently, AFC partnered with Egypt’s Infinity Energy to acquire Lekela Power, an independent power producer (IPP) with a portfolio of 1 GW of wind assets, including five operational wind farms in South Africa (624 MW), one operational wind farm in Egypt (252 MW), and another in Senegal (159 MW). And as part of its diversification strategy, AFC recently secured a €100 million loan from the Italian development finance institution Cassa Depositi e Prestiti (CDP).
