Africa Finance Corporation (AFC) Raises US$400 million in Shariah-compliant Commodity Murabaha facility to fund African Infrastructure
African Financial Company (AFC) (AFC) (www.africafc.orgThe continent’s leading infrastructure solutions provider, which has successfully closed the $400 million Sharia Murabha plant, marks its first strategic return to the Islamic financial market in eight years. This milestone reflects the AFC’s commitment to diversifying its funding sources while expanding access to ethical and sustainable financing to meet infrastructure needs in Africa.
The facility was initially launched for $300 million, with the facility priced at up to $400 million as strong investor demand led to 47% overcontracting. The deal attracted the participation of 11 leading Islamic financial institutions, including a new AFC partnership with Abu Dhabi Islamic Bank PJSC, Al Rajhi Bank and UAE Islamic Bank.
“The deal reaffirms the AFC’s bridge between global capital and Africa’s most urgent infrastructure needsAFC President and CEO Samaila Zubairu said. “Overwhelming demand shows the increasing importance of our investment strategies and Africa’s importance to the Islamic financial landscape. By expanding international funding sources, we continue to create innovative financial solutions to drive impactful and sustainable development across the continent. ”
NBD Capital Limited, First Abu Dhabi Bank PJSC and SMBC Bank International Plc serve as joint chief orchestration and study for the transaction, strengthening AFC’s strong relationship with leading global financial institutions.
The deal is based on the AFC’s proven track record in Islamic finances, including its groundbreaking $230 million Sukuk, the first of an African supranational entity to be issued in 2017.
The AFC has always expanded its funding portfolio through innovative deals that open up new capital markets to attract global investors into African infrastructure. In January, the AFC raised $500 million from its first permanent mixed bond. In the same month, before the potential panda bond issuance, the AFC received the highest credit rating from the Standard & Poor’s Global (China) rating and China International Credit Ratings Co., Ltd. (CCXI).
The financing facility is structured according to standards set by Islamic financial institutions or AAOIFI’s accounting and auditing organizations to ensure full compliance with global Islamic financial principles.
Islamic finance, including the Murabha structure, is widely regarded as ethical and sustainable because of its focus on asset-backed financing, risk sharing and prohibition of speculation. These principles are in line with the AFC’s mission to promote responsible investment, which promotes long-term infrastructure development and economic stability in Africa.
“Islamic finance plays an increasingly important role in our funding strategy, helping us leverage a wide variety of investors who share AFC’s commitment to sustainable and responsible investments“Banji Fehintola, member of the AFC Executive Board and head of financial services, said.The success of the Murabha plant highlights a strong interest in African infrastructure investment and emphasizes the AFC’s ability to build deals that meet the expectations of global investors. ”
The three-year proceeds in Murabaha will support the AFC’s mission to accelerate industrialization, infrastructure development and economic growth across the continent. Many of the AFC’s transformational infrastructure projects are located in the Middle East and North Africa, including Xlinks in Morocco, a groundbreaking project designed to provide sustainable electricity from the Sahara Desert to the UK. By acquiring Lekela Power, AFC and its partners are Cairo-based Infinity Power, Africa’s largest clean energy investor, with a goal of 3GW of renewable capacity by 2026.
Distributed by Apo Group on behalf of the African Financial Corporation (AFC).
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Ywande Thorpe
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African Financial Company
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About AFC:
Founded in 2007, AFC is a catalyst for practical infrastructure and industrial investment throughout Africa. The AFC’s approach combines professional industry expertise with focus on financial and technical consulting, project structure, project development and venture capital to meet infrastructure development needs in Africa and drive sustainable economic growth.
Over the past 17 years, AFC has established its trail of choice as Africa’s preferred partner for investment and delivery of instrumental, high-quality infrastructure assets that provide basic in the fields of power, natural resources, heavy industry, transportation and core infrastructure. Services, telecommunications. The AFC has 45 member states and has invested $15 billion in 36 African countries since its inception.
