AFC increases its assets by 16% in 2021 thanks to the rise in impact investing

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African Finance Corporation (AFC), Africa’s leading infrastructure solutions provider, achieved 16% growth in total assets thanks to high-impact investments and a strong credit profile.

The total assets of the company, which celebrated its 15th anniversary in Lagos, recently increased by 16.3% to a record $8.56 billion.

Despite the pandemic and commodity headwinds impacting AFC’s operating environment, the Company saw its annual profits grow 26.6% to $209.7 million in 2021 , surpassing the $200 million mark for the first time in its 15-year history, up from $165.5 million in 2020.

The dramatic increase can in part be attributed to investments in high-impact assets in targeted sectors across Africa. The Corporation has leveraged its credit rating and reputation for quality to mobilize financing from international markets to help reduce Africa’s infrastructure deficit.

“This year has been a year of solid progress in our fundamental objectives of creating value for African economies through instrumental infrastructure driving growth and job creation,” said Samaila Zubairu, President and CEO of ‘AFC.

AFC’s reach on the continent is now greater than it has ever been, with investments spanning 35 countries and cumulative disbursements increasing by 14% to $9.9 billion (2020 $8.7 billion). AFC has increased the number of member states from five to 33, with the membership of Burkina Faso, Democratic Republic of Congo, Egypt, Morocco and Niger.

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Among the projects in 2021, AFC invested $150 million for the development of integrated cashew and cotton industrial parks in Benin and Togo; provided a $200 million corporate facility to BUA Industries Limited for the construction of a sugar refinery and ethanol plant in Nigeria; and invested $175 million in the Baomahun gold project in Sierra Leone.

AFC Capital Partners (ACP) opened as an independent asset management firm and launched its first product, the Climate Resilient Infrastructure Fund, with the aim of raising $500 million in 12 months and $2 billion over the next three years to invest in robust energy, transportation, buildings and other infrastructure.

The past year has also seen AFC successfully launch two new products through the Syndications unit – A/B Bonds and Credit Insured B Loans – which will significantly enhance the ability to channel capital from the markets. of global investment to the African continent.

The Company continued to diversify its funding, with borrowings increasing 21.5% year-over-year to $6.19 billion (2020: $5.09 billion). AFC successfully tapped global debt markets by issuing $1.8 billion in new loans and bonds during the year.

This included: a $250 million Tier 2 capital loan from the US International Development Finance Corporation, a seven-year $750 million Reg S/144A Eurobond (notes maturing in 2028 were priced at 175 basis points to US Treasuries for a yield of 2.991% and were 3.5 times oversubscribed), 100 million euro 10-year euro-denominated loan by KfW – Ipex, a subsidiary of the KfW group, 170 million USD 12-year syndicated multilateral loan led by Deutsche Investitions- und Entwicklungsgesellschaft (DEG), USD 100 million 10-year one-year loan facility from the Export-Import Bank of India, and a loan three-year, $400 million club (2.5 times oversubscribed), the equivalent of $194 million in five privately placed medium-term notes under the $5 billion Global Medium-Term Note program .

“With this growth in trade, our demographic trends and rapid industrialization, we are seeing exponential growth in opportunities for diversification and enrichment across a range of countries and sectors,” Zubairu said.

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