Africa Finance Corporation (AFC), a multilateral development finance institution, has closed a $300m dual tranche (2-Year and 3-Year) club facility arranged by six initial mandated lead arrangers and bookrunners.

Bank of Tokyo-Mitsubishi UFJ, Citibank, Deutsche Bank AG, FirstRand Bank, Standard Bank of South Africa and Standard Chartered Bank each committed funding of $50m to the facility.

Subsequent to the initial funding, a secondary market syndication of the facility was arranged.

The secondary market syndication witnessed a strong demand for the credit, with new commitments of $336.5m raised from 16 lenders across various geographies such as Asia, Europe and the Middle East, including: Industrial and Commercial Bank of China, Commercial Bank of Kuwait, The Korea Development Bank, KDB Bank Europe, Burgan Bank, Tunis International Bank, First Gulf Bank, Bank of China, State Bank Of India, Banque des Mascareignes, Commercial Bank of Qatar, The Export-Import Bank of the Republic of China, Korea Exchange Bank, Al Ahli Bank of Kuwait, First Commercial Bank, Mega International Commercial Bank and United Taiwan Bank.

The facility was more than two times oversubscribed during the primary and secondary market process, with AFC receiving total commitment of $636.5m from 22 lenders.

The proceeds of the facility will be used by AFC for general corporate purposes including the facilitation of trade.

AFC was established in 2007 with a capital base of $1bn, to be the catalyst for private sector infrastructure investment across Africa.

AFC’s investment approach combines specialist industry expertise with a focus on financial and technical advisory, project structuring, project development and risk capital to address Africa’s infrastructure development needs and drive sustainable economic growth.

AFC invests in high quality infrastructure assets that provide essential services in the core infrastructure sectors of power, natural resources, heavy industry, transport, and telecommunications.

AFC has become the benchmark institution for private sector investment in Africa.

Banji Fehintola, Senior Vice President & Treasurer at Africa Finance Corporation, said: “AFC’s long term vision is to help address Africa’s infrastructure deficit and ensure sustainable economic growth for the continent. We are encouraged by the confidence that our lenders have placed in us.”

“We believe that the well documented need for bridging the infrastructure investment divide across Africa will provide the opportunity to apply AFCs differentiated model of providing long-term infrastructure financing and value added infrastructure asset project development expertise, to generate real value for our investors and stakeholders,” he said.