Africa Finance Corporation (AFC), which is Africa’s leading infrastructure solutions provider, has secured an inaugural Sustainability-Linked Term Loan Facility of $255 million from the UAE banks, marking a significant milestone in the Corporation’s innovative funding strategy and deepening its financial ties with the UAE.
The loan reflects AFC’s commitment to use financial innovation tools to optimise funding for transformative infrastructure. Along with further expanding AFC’s geographical funding base, the transaction aligns future borrowing costs with measurable environmental outcomes through predefined Sustainability Performance Targets (SPTs).
The structure allows AFC to benefit from reduced loan costs upon achieving key sustainability targets, signalling to investors and stakeholders the importance of environmental responsibility to its infrastructure investment mandate.
This transaction is a testament to the strength of our partnerships in the UAE and our continued commitment to sustainable infrastructure development across Africa
The loan facility was anchored by a syndicate of prominent UAE-based financial institutions including Abu Dhabi Commercial Bank, Emirates NBD Capital Limited, First Abu Dhabi Bank, Mashreqbank, and the National Bank of Ras Al Khaimah acted as Initial Mandated Lead Arrangers and Bookrunners (IMLABs).
Mashreqbank additionally served as Global Coordinator and Documentation Agent, while First Abu Dhabi Bank acted as Sustainability Coordinator and the Emirates NBD Bank acted as the Facility Agent.
Key Milestone
Banji Fehintola, Executive Board Member & Head, Financial Services at AFC, said that this facility represents a key milestone in AFC’s journey.
“By tapping the UAE Dirham market and embedding sustainability performance into our funding terms, we are not only diversifying our funding sources but also aligning our financing strategy with our mission to catalyse infrastructure-driven economic growth and industrial development across Africa. This transaction is a testament to the strength of our partnerships in the UAE and our continued commitment to sustainable infrastructure development across Africa,” Fehintola added.
This loan builds on AFC’s strong momentum in diversified and sustainable capital raising. Following a record 1.16 billion syndicated loan in 2024, AFC debuted a $500 million hybrid capital issuance and a $400 million Murabaha facility in 2025.
AFC also expanded its climate finance instruments – having issued a $187.86 million Green Bond in 2020, and in 2024, pioneering Green Shares with a $30 million equity investment from the African Development Bank.
These efforts complement AFC’s strategic stake in Lekela Power, through Infinity, forming Africa’s largest renewable energy platform with over 1 GW of clean power capacity, reaching 1.2 million homes and avoiding 7.9 million tonnes of CO₂ emissions annually, the Corporation added.
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