India Exim Bank extends US$ 100 mn loan to Africa Finance Corporation to spur post-covid recovery

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Africa Finance Corporation (AFC), the leading infrastructure solutions provider on the continent, has received a US$100 million credit line from the Export-Import Bank of India (India Exim Bank) to develop critical infrastructure required for the revival of Africa’s economies in the wake of the Covid-19 pandemic.

Proceeds from the 10-year loan will support AFC’s continued mission to bridge Africa’s infrastructure gap and drive the sustainable economic growth urgently required on the continent. India Exim Bank, the sovereign export credit agency of India, has actively sought opportunities to co-finance projects in Africa through credit lines to support infrastructure development. Africa Finance Corporation draws capital from a diverse range of international investors and lenders as part of its strategy to maintain Africa’s second highest investment grade credit ratings.

“As part of our mandate, India Exim Bank continues to foster a network of alliances and institutional linkages with multilateral agencies like Africa Finance Corporation, who have a strong credit profile and are at the forefront of changing the development landscape in Africa,” said Harsha Bangari, Deputy Managing Director of India Exim Bank. “We look forward to broadening the relationship between our institutions for the economic benefit of Africa.”

India Exim Bank provides credit lines to national governments, regional financial institutions, commercial banks and other overseas entities as part of its strategy to develop global partnerships.

AFC’s President and CEO Samaila Zubairu said: “The Covid-19 pandemic has set back Africa’s growth trajectory and compounded its development challenges. We at AFC, continue to execute our mandate to address Africa’s infrastructure needs, working with leading development partners such as India Exim Bank. These strategic partnerships help mobilise the urgently needed capital to rebuild Africa post-pandemic, with more resilient and sustainable infrastructure across key sectors including renewable energy, transportation and telecommunications.”

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Africa Finance Corporation recently received a boost to its credit ratings outlook from Moody’s Investors Service, which assigned its A3 rating a “stable” outlook. The Corporation’s unique access to global capital markets drives development, integrates Africa’s economies, and transforms lives on the continent.