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Zawya
27-03-2025
- Business
- Zawya
Africa Finance Corporation (AFC) Takes Center Stage with Six Prestigious Awards at the Global Banking & Markets Africa Awards 2025
Africa Finance Corporation (AFC) ( the continent's leading infrastructure solutions provider, has been recognized for its outstanding contributions to Africa's financial and capital markets with six prestigious awards at the Global Banking&Markets Africa Awards 2025, presented during the Bonds, Loans&ESG Capital Markets Conference in Cape Town. These accolades underscore AFC's pivotal role in landmark transactions that drive sustainable development and economic growth across the region. Award-Winning Transactions: Quasi-Sovereign/GRE Treasury&Funding Team of the Year AFC's Treasury and Funding team was recognized for its expertise and innovation in structuring financing solutions that attract global capital to African infrastructure projects. Notable achievements include the closure of a US$400 million Shariah-compliant Commodity Murabaha facility and a groundbreaking US$1.16 billion syndicated loan, which broadened AFC's global investor base. Additionally, AFC earned top-tier credit ratings from S&P Global (China) Ratings and China Chengxin International Credit Rating Co. Ltd (CCXI). Syndicated Loan Deal of the Year: Bank of Industry EUR 1.87bn Syndicated Loan As Global Coordinator, Lead Co-Arranger, Underwriter, Bookrunner, and Guarantor, AFC led the record-breaking €1.87 billion syndicated loan for Bank of Industry (BOI), Nigeria's largest development finance institution. This historic transaction, BOI's largest capital raise to date, facilitates financing for trade-related projects and affirms AFC's capacity to navigate complex global markets. This landmark deal has already garnered widespread industry recognition, earning AFC three additional awards earlier this month: Guarantor of the Year, Africa and Market Innovation Award, Africa at the IJGlobal Awards, as well as African Deal of the Year at the Global Capital Syndicated Loan Awards. 3. West Africa Deal of the Year: Federal Government of Nigeria USD 917mm Bond AFC acted as Global Coordinator for the inaugural domestic dollar bond issuance by the Federal Government of Nigeria (FGN), successfully raising US$917 million, with 180% oversubscription. The bond, which has a five-year tenor and 9.75% coupon, was successfully listed on the Nigerian Exchange (NGX) and FMDQ Securities Exchange, attracted a diverse investor base, including local and diaspora Nigerians and institutional investors. Securitization Deal of the Year: BUA Industries US$200mm Securitization AFC played a key role in structuring a US$200 million corporate finance facility for BUA Industries Limited. The financing, provided by Afreximbank, supports BUA's expansion across industries including sugar, cement, flour and oil processing, and real estate development. AFC's second successful advisory mandate for BUA Group, the facility, demonstrates AFC's commitment to unlocking capital for African businesses and fostering sustainable growth. Financial Institutions Bond Deal of the Year: Ecobank Transnational USD 400mm Senior Bond As Joint Lead Manager in the successful pricing of Ecobank Transnational's US$400 million 10.125% bond, AFC highlighted its commitment to supporting financial institutions raising capital to drive economic progress. The five-year RegS/144A bond, maturing in 2029, marks the first public Sub-Saharan African Eurobond issued by an African bank since 2021. Quasi-Sovereign/GRE Bond Deal of the Year: US$500mm Reg S / 144A Senior Unsecured Bond AFC returned to the global debt capital markets with the issuance of a US$500 million 144A/Reg S Eurobond, which saw an oversubscription rate more than 2 ½ times the book size. The five-year Note, with a 5.55% coupon, achieved a record-tight T-spread for AFC, reflecting robust investor confidence in AFC's creditworthiness. AFC's Commitment to Africa's Economic Growth 'We are grateful to judges for their recognition through these numerous awards of AFC's relentless pursuit of innovative financing solutions that drive sustainable development across Africa,' said Samaila Zubairu, President and CEO of AFC. 'We are proud to be at the forefront of mobilizing capital for transformational infrastructure projects across the continent and in building a more resilient, self-sustaining Africa. I want to extend my gratitude to the judges for this recognition and to our exceptional AFC team for their incredible talent and dedication to driving Africa's economic transformation.' Banji Fehintola, Executive Board Member&Head of Financial Services at AFC, added: 'These awards highlight AFC's role as a trusted partner in African and global capital markets, and reflect our collective efforts in shaping Africa's financial landscape and driving growth in the region. My sincere thanks to the judges and to AFC's Treasury, Funding and Capital Markets teams for their commitment, dedication and hard work.' As AFC continues expanding its footprint in global markets, the Corporation remains dedicated to delivering high-impact infrastructure projects that foster industrialization, intra-African trade, and economic diversification. Distributed by APO Group on behalf of Africa Finance Corporation (AFC). Media Enquiries: Yewande Thorpe Communications Africa Finance Corporation Mobile: +234 1 279 9654 Email: About AFC: AFC was established in 2007 to be the catalyst for pragmatic infrastructure and industrial investments across Africa. AFC's approach combines specialist industry expertise with a focus on financial and technical advisory, project structuring, project development, and risk capital to address Africa's infrastructure development needs and drive sustainable economic growth. Seventeen years on, AFC has developed a track record as the partner of choice in Africa for investing and delivering on instrumental, high-quality infrastructure assets that provide essential services in the core infrastructure sectors of power, natural resources, heavy industry, transport, and telecommunications. AFC has 45 member countries and has invested over US$15 billion in 36 African countries since its inception.
Zawya
17-03-2025
- Business
- Zawya
Africa Finance Corporation (AFC) Sweeps IJGlobal and Global Capital Awards with Hat Trick of Major Wins
Africa Finance Corporation (AFC) ( the continent's leading infrastructure solutions provider, has been honoured with three prestigious accolades, further underscoring its impact in shaping Africa's financial landscape. At the IJGlobal Awards 2024 held recently in London, AFC was named Guarantor of the Year, Africa, and also received the Market Innovation Award, Africa. The following evening, AFC was recognised with the African Deal of the Year at the Global Capital Syndicated Loan Awards in London. The trio of awards showcase AFC's pioneering role in infrastructure financing, risk mitigation, and innovative financial solutions that drive sustainable economic growth across Africa. AFC's triple win highlights its lead role in arranging a record €2 billion syndicated facility for the Bank of Industry (BOI), the largest capital raise in the history of African development finance institutions. AFC served as Global Coordinator, Lead Co-Arranger, Underwriter, Bookrunner, and Guarantor in the successful syndication. Leveraging its structuring and credit enhancement, AFC assembled a consortium of international financial institutions for the facility, including Standard Chartered Bank, African Export-Import Bank, First Abu Dhabi Bank PJSC, FirstRand Bank Limited (through its Rand Merchant Bank division – London Branch), Mashreqbank PSC, SMBC Bank International PLC, Absa Bank (Mauritius) Limited, Absa Bank Limited, and the Export-Import Bank of India (London Branch). AFC has consistently led the way in unlocking international capital markets for African institutions. In 2023, AFC supported the Egyptian Government as Re-Guarantor on a JPY75 billion Samurai Bond Issue, exemplifying AFC's role as a key enabler of global financing for African sovereigns. This transaction won AFC the Innovation of the Year Award (MENA) at the IJGlobal Awards 2023. Earning Guarantor of the Year, the Market Innovation Award, and African Deal of the Year reaffirms AFC's expertise in attracting global capital to African markets and its commitment to structuring innovative financing solutions that bridge the continent's infrastructure gap. AFC's investment strategies continue to drive economic resilience and industrialization across the continent. 'We are honored to receive these prestigious awards, which reflect AFC's ongoing mission to unlock Africa's infrastructure potential through financial innovation,' commented Samaila Zubairu, President&CEO of Africa Finance Corporation. 'These recognitions further validate our credentials as a trusted partner in mobilizing capital to drive sustainable development across the continent. We extend our gratitude to our partners and stakeholders whose collaboration has been instrumental in achieving these milestones.' Banji Fehintola, Executive Director and Head of Financial Services at AFC, said: 'These recognitions from IJGlobal and Global Capital are a testament to AFC's leadership in structuring innovative financial solutions that de-risk investments and attract international capital to Africa. The success of the €2 billion syndicated facility for BOI demonstrates our ability to mobilize global funding at scale, supporting economic development and industrialization across the continent.' The IJGlobal Awards celebrate outstanding achievements in global greenfield and refinancing deals across various sectors that shape the infrastructure and energy landscape, while the Global Capital Syndicated Loan Awards honor the most significant and innovative syndicated loan transactions worldwide. Distributed by APO Group on behalf of Africa Finance Corporation (AFC). Media Enquiries: Yewande Thorpe Communications Africa Finance Corporation Mobile: +234 1 279 9654 Email: About AFC: AFC was established in 2007 to be the catalyst for pragmatic infrastructure and industrial investments across Africa. AFC's approach combines specialist industry expertise with a focus on financial and technical advisory, project structuring, project development, and risk capital to address Africa's infrastructure development needs and drive sustainable economic growth. Seventeen years on, AFC has developed a track record as the partner of choice in Africa for investing and delivering on instrumental, high-quality infrastructure assets that provide essential services in the core infrastructure sectors of power, natural resources, heavy industry, transport, and telecommunications. AFC has 45 member countries and has invested US$15 billion across Africa since inception.
Zawya
24-02-2025
- Business
- Zawya
Nigeria: Demand for BOI's services has never been higher
The Bank of Industry (BOI) Ltd is Nigeria's oldest and largest de- velopment financing institution. It was originally incorporated in 1959 as the Investment Company of Nigeria (ICON) Ltd and later transformed into the Nigerian Industrial Development Bank (NIDB) in 1964 under the guidance of the World Bank. Its initial equity was largely held by the International Finance Corporation, alongside other domestic and foreign investors. In 2001, the bank underwent a major transformation, merging the mandates of NIDB, the Nigeria Bank for Commerce and Industry, and the National Economic Reconstruction Fund to become the Bank of Industry as it is today. Since then, it has steadily grown, with its authorised share capital increasing from N50bn to N500bn to better execute its mandate, to support the industrial sector by providing financial assistance to large, medium, and small enterprises in the sphere. In 2023, the bank had tier- one capital of $640m, with over $4bn of assets and profits of $114m. The bank has become an even more critical player in the Nigerian economy as the country undergoes the necessary but painful reforms initiated by President Bola Ahmed Tinubu since he took office in 2023. One of the reforms has been a change in the remit of the Central Bank of Nigeria, which has moved away from the development finance function that it had played previously. This means, accord- ing to Dr Olasupo Olusi, BOI's managing director, who took office in November 2023, that there is even more demand for the type of financing that BOI provides. 'The pressure has now moved to de- velopment finance institutions like BOI, to step up to the plate and fill that gap for long-term funding at low interest rates,' he told me in a conversation on the side- lines of the Creative Africa Nexus Weekend in Algiers. For borrowers, BOI's rate of 9-12% compares favourably with commercial rates that are currently available, which can be north of 30%. 'We have seen hundreds of billions of naira-worth of applications, much more than we have ever seen,' Olusi reports. The bank's loans, which also have a longer tenure than typical commercial facilities, are extended to all areas across the industrial sector. 'We provide loans to the agribusiness sector, though not for production itself [that is farmers]. We also field applica- tions from manufacturing, digital busi- nesses, aviation, infrastructure, climate and sustainability projects and also from the extractive business, as well.' From all these sectors, Olusi says, there has been an increase in the demand for the long-term, low interest money from BOI. Boosting the creative sector The bank is supporting Nigeria's burgeon- ing creative sector, which is why Olusi was at CANEX, a gathering of the continent's creative heavyweights underwritten by the African Export-Import Bank. 'It's one of the sectors that has been identified as capable of driving growth and job creation in Nigeria,' he says, not- ing the entrepreneurial spirit of the na- tion's economy, which is heavily driven by young people in startups and innova- tive firms and which has seen significant expansion, especially in film and music. 'If you look at Nigeria's footprint now in film, music, globally, it has increased significantly over the years.' BOI has extended a supporting hand to the sector, with a number of very im- portant projects, such as the establish- ment of a film fund and other creative economy initiatives. A significant project is the $640m Investment in Digital and Creative Economy Project (IDICE), sup- ported by the African Development Bank, Agence Française de Développement, the Islamic Development Bank, and the Nige- rian government. 'This initiative is really to catalyse the development of the creative economy, as well as the digital economy, tech and others,' he says. Returning to day-to-day banking, he says that despite a growing loan book, the bank's non-performing loans are well within the industry margin. 'Our NPL is still around 2% and that's a very good thing, given the fact that the expected benchmark from the Central Bank is about 5%.' He credits this to the bank's robust risk management protocols. 'We manage our risks very effectively, using either a legal model for the small loans or a commercial bank guarantee for larger ones. That has helped us to insulate our loan book from many risks of defaults from the private sector side.' He says the increased demand for fi- nancial products is evidence that the un- derlying fundamentals of the Nigerian economy remain strong, despite the ap- parent headwinds. 'We've seen massive investments in very significant projects in infrastructure, power, manufacturing and across all the various sectors of the Nige- rian economy. That is very encouraging. It tells you that there's a strong appetite for investment. There's a strong appetite for Nigeria and there's a strong outlook for economic growth.' Taking on a catalytic role How does he see the role of development finance institutions (DFIs) now that gov- ernments are cash-strapped and fis- cally constrained? Olusi believes that they need to play a catalytic role to bring in more finance – and work with commercial banks to reduce the cost of credit for busi- nesses. 'We will also continue to work with commercial banks because they are a very im- portant component in the work that we do to support the private sector. They have a role to play in the risk mitigation of our loan book. And they also have a role to play in the monitoring and evaluation of the success of many of the projects that we invest in.' The relationship between BOI and Nigeria's commercial banks, he says, is very much sym- biotic and he believes the commercial banks are doing their bit to support the country's MSMEs, which account for vast swathes of the country's economy. He ar- gues that Nigeria's commercial banks are working within their risk limitations and continue to provide funding that supports the economy. The federal government commitment to the sector is equally important. It has set up a N200bn ($120m) fund to support micro enterprises and SMEs. 'So there's a lot going on for the MSME segment in the Nigerian economy,' Olusi points out. Olusi clarifies that growing demand from the market is responsible for the expanding loan book, rather than explicit instructions from the federal government or the Central Bank. The Central Bank, however, is committed to supporting DFIs to meet the gap in the market created by its own withdrawal from that space, and is exploring various instruments to capacitate and strengthen Nigerian DFIs. BOI itself has been making efforts to boost its capital, with a successful Eu- robond issue. Olusi says the bank is in the second phase of a global syndication, which is set to conclude soon. 'The first phase, the senior phase, ended recently, and we were able to raise about €1.425bn,' he reveals, adding that this was closed around three to four weeks ago. The bank, he says, has a solid plan to continue engaging in global syndications, collaborating with DFIs such as the AfDB to secure long-term loans for deployment into the Nigerian economy. The successful issue is reflective of interest that the bank is getting, result- ing in rates that, while he will not share the details, were 'significantly reduced due to the African Finance Corporation and central bank guarantees around it.' The bank is attracting investments from at least 60 relationship banks from regions such as the Middle East, Europe, the Far East, China, and India. 'We have a very well-diversified portfolio of investors globally,' he says, adding that 'our recent syndication saw nearly a 70% oversub- scription, which is certainly good news for us and demonstrates strong investor confidence in the Bank of Industry and the Nigerian economy.' With such responses, Olusi is sanguine about the prospects for the bank and the Nigerian economy, but is clear about the work that needs to be done. 'We will con- tinue to be strategic,' he says, noting that BOI has identified six critical thematic areas for investment: youth and skills, climate and sustainability, gender, in- frastructure, digital transformation and technology, and MSMEs. 'We need to upscale our investments in those six the- matic areas, which are very, very important for the Nige- rian economy going forward. This is why we have gone out globally to raise the resources we need to ensure that pri- vate enterprises in those sec- tors are going to thrive,' he notes. The Bank of Industry, Nigeria's oldest DFI, has managed to renew itself over the decades by adapt- ing to changing conditions while remaining faithful to its founding principles. It can confidently look forward to serving the nation over the coming decades. ■ © Copyright IC Publications 2022 Provided by SyndiGate Media Inc. (
