The Africa Finance Corporation (AFC) has just achieved a major financial feat by mobilising $300 million from 7 Indian banks to support infrastructure projects in Africa. This announcement, initially relayed by the Bank of Africa, the lead bank for this operation, has generated keen interest in international financial circles.
Among the seven Indian banks involved, renowned names such as State Bank of India, Canara Bank, Bank of India, UCO Bank, Indian Bank, SBI and Indian Overseas Bank have expressed their commitment to infrastructure development in Africa.
This fundraising, having been oversubscribed by 50%, represents a significant step forward in AFC’s financing strategy, which has established itself as a key player in the sector in Africa. Said Adren, CEO of BOA UK, highlighted the importance of this operation in terms of opening up new financing opportunities for Africa, with India in its sights.
This historic event would not have been possible without the involvement and expertise of the Bank of Africa, which masterfully orchestrated this major transaction. Zineb Tamtaoui, Managing Director of the BOA-DIFC branch, also expressed her satisfaction with the essential role played by BOA UK in managing the expectations of international lenders, highlighting an indisputable know-how.
Beyond this financial success, AFC also plans to broaden its horizons by opening up 24% of its capital to non-African shareholders. A bold move aimed at stimulating investment on the continent and further diversifying its sources of financing.
With a view to continued growth, AFC has already announced its intention to launch a $300 million sukuk at the end of the year, marking a new important step in its strategy of mobilizing resources to support Africa’s economic development.
This mobilization of funds demonstrates investors’ confidence in the growth potential of the African continent, while highlighting the importance of strong international partnerships to realize infrastructure projects essential to the sustainable development of the region.