Africa Finance Corporation said it has reached financial close on a $753 million project financing for the Lobito Corridor railway, a major cross-border infrastructure initiative aimed at linking Angola’s Atlantic port to the mineral-rich regions of the Democratic Republic of Congo and Zambia.
The funding will support the rehabilitation, upgrade, and long-term operation of the roughly 1,300-kilometer brownfield rail line from the Port of Lobito to the DRC border. The project is expected to improve transport of goods, particularly copper and other minerals from the Central African Copperbelt, to global markets.
AFC acted as co-financial adviser alongside Eaglestone on the transaction for Lobito Atlantic Railway S.A., the concessionaire controlled by a joint venture of Mota-Engil and Trafigura. Angola awarded the concession for its section of the corridor in 2022 to a consortium that also includes Belgian operator Vecturis.
The financing package comprises $553 million from the U.S. International Development Finance Corporation and $200 million from the Development Bank of Southern Africa.
“The financial close of the Lobito Corridor Railway Project underscores AFC’s leadership in delivering complex transformational infrastructure that advances Africa’s industrialisation and regional integration,” Samaila Zubairu, president and chief executive officer of Africa Finance Corporation, said in a statement.
Nuno Gil, founding partner of Eaglestone, described the deal as “a defining moment for infrastructure finance in Sub-Saharan Africa,” highlighting the successful structuring of a complex, multi-lender, cross-border project financing.
The Lobito Corridor is viewed as one of the continent’s more strategic transport routes, with potential to strengthen regional trade and connectivity between Angola, the DRC, and Zambia. The financial close follows key financing agreements signed late last year.
Posts
0 Comments