MUMBAI: The Africa Finance Corporation (AFC) has successfully mobilised $300 million in capital from a consortium of seven Indian banks, including prominent institutions such as the State Bank of India, Canara Bank, Bank of India, Indian Bank, UCO Bank, SBI (Mauritius) and Indian Overseas Bank.
The funding initiative, which was oversubscribed by 50 per cent, reflects a growing interest among Indian lenders in the investment potential and risk associated with African markets.
As noted by Said Adren, CEO of the Bank of Africa, which served as the sole mandated lead arranger and bookrunner for the syndicate loan, this transaction indicates a shift in the perception of Africa as a viable investment destination.
Fostering economic growth
AFC’s strategic engagement with Indian banks not only underscores the importance of international financial partnerships but also highlights the increasing willingness of financial institutions in emerging markets to diversify their portfolios.
The recent issuance of a $500 million bond by AFC in the global debt capital markets further emphasises its commitment to catalysing infrastructure and development projects across Africa. The deployment of this newly secured capital is poised to foster economic growth and stability within the continent, addressing critical needs in sectors such as energy, transportation, and telecommunications.
The positive affirmation of an A3 credit rating by Moody’s, accompanied by an outlook upgrade from negative to stable, further solidifies AFC’s standing in the international finance community. This endorsement is indicative of the institution’s commitment to financial prudence and effective management of resources, making it an attractive partner for Indian banks and other global financiers.
