The Africa Finance Corporation (AFC) has announced the successful closing of a 5-year $100 million loan facility from the Korea Development Bank (KDB).
According to a press release, the credit from South Korea’s state-owned policy bank follows a recent Samurai loan facility from Japanese investors in October, as AFC leverages Asian capital markets.
The statement said that the KDB acted as Mandated Lead Arranger in a $400 million syndicated loan facility raised by AFC in 2021 to support postpandemic recovery in Africa, adding that the new bilateral loan facility from KDB will support mid-term liquidity as AFC works to deliver fast and sustainable solutions to close Africa’s infrastructure gap and unleash the continent’s prosperity.
Commenting on the $100m loan facility, Director and Head of Africa and the Middle East for KDB, Philip Smith, said: “We are very proud to be partnering with AFC and assisting it in its mission across Africa, as well as executing on our strategy to grow across the region.
“This facility not only builds on the relationship between our organisations, it helps to facilitate economic relations between South Korea and Africa.” Senior Director & Treasurer of AFC, Banji Fehintola, said: “We are pleased to have secured this loan facility from a highly rated finance institution such as the Korea Development Bank.
“Our success signifies Asia and, in particular, South Korea’s growing appetite for African investments and we at AFC are committed to continue being the bridge that connects investors to Africa.
We welcome KDB’s commitment to its Africa strategy and look forward to a continued partnership with them and other global investors keen on playing a part in Africa’s transformation story.”
The loan facility is the latest example of AFC’s funding diversification strategy and shows the evolution in the role South Korea can play in the economic development of Africa.
