The Africa Finance Corporation (AFC), an infrastructure financing institution, has obtained an AED 937.50 million ($255 million) Sustainability-Linked Term Loan Facility from a group of UAE-based financial institutions, marking its first such deal and expanding its financial connections with the region.
The loan links borrowing costs to specific Sustainability Performance Targets (SPTs), allowing AFC to lower costs if it meets predefined environmental goals. This structure aims to align AFC’s financing with its focus on sustainable infrastructure projects in Africa.
The facility was arranged by a syndicate of UAE banks, including Abu Dhabi Commercial Bank PJSC, Emirates NBD Capital Limited, First Abu Dhabi Bank PJSC, Mashreqbank PSC, and The National Bank of Ras Al Khaimah (P.S.C.), acting as Initial Mandated Lead Arrangers and Bookrunners. Mashreqbank PSC served as Global Coordinator and Documentation Agent, First Abu Dhabi Bank PJSC as Sustainability Coordinator, and Emirates NBD Bank (P.J.S.C.) as Facility Agent.
Banji Fehintola, AFC’s Executive Board Member and Head of Financial Services, stated, “This facility diversifies our funding sources and incorporates sustainability into our financing, supporting our goal of infrastructure-driven economic growth in Africa.”
The deal follows AFC’s recent financing activities, including a $1.16 billion syndicated loan in 2024, a $500 million hybrid capital issuance, and a $400 million Murabaha facility in 2025. AFC has also pursued climate finance, issuing a CHF150 million Green Bond in 2020 and receiving a $30 million equity investment in Green Shares from the African Development Bank in 2024. Through its stake in Lekela Power via Infinity, AFC supports a renewable energy platform delivering over 1 gigawatt of clean energy to 1.2 million homes, reducing CO2 emissions by 7.9 million tonnes annually, according to the corporation.
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