Updated
Updated · Bloomberg · Jun 4
Africa Finance Corp. Raises $2 Billion Loan as Asian and European Banks Supply 70%
Updated
Updated · Bloomberg · Jun 4

Africa Finance Corp. Raises $2 Billion Loan as Asian and European Banks Supply 70%

3 articles · Updated · Bloomberg · Jun 4

Summary

  • $2 billion in syndicated financing gives Africa Finance Corp. fresh capital, with Asian and European banks together providing more than half of the loan.
  • About 35% of creditors came from each of those two regions, underscoring overseas lenders' push to tap rising demand for African infrastructure projects.
  • AFC said it has a pipeline of projects to fund and is also in talks to invest in a proposed East African oil refinery backed by billionaire Aliko Dangote.
  • The deal highlights how cross-border bank appetite is helping channel larger pools of capital into African infrastructure and energy development.

Insights

The new refinery is planned for Tanzania, but its billionaire backer prefers Kenya. Who decides its fate?
Is a $17 billion oil refinery the wisest use of capital for a continent described as 'capital-rich'?