At a Glance
- AFC secures $524 million Samurai loan to boost Africa’s infrastructure financing capacity.
- Oversubscribed facility signals rising Japanese lender confidence in AFC’s credit strength.
- New Asian participants underscore broader regional interest in Africa’s development projects.
Africa Finance Corporation has secured a $524 million dual-currency Samurai loan, its largest to date in Japan’s capital markets, strengthening its ability to finance major infrastructure projects across the continent.
The deal arrives at a time when interest in African development is rising among Asian lenders looking for stable, long-term exposures.
The three-year syndicated facility split between $505 million and ¥3 billion—was significantly oversubscribed. People familiar with the transaction said the heavy demand shows Japanese banks see AFC as a dependable borrower with a solid record of repayment and clear project pipelines.
Investor interest also reflects a broader shift in Japan, where banks are gradually expanding their participation in sustainable development financing and looking beyond traditional markets for steady returns.
Growing confidence in AFC’s credit strength
The latest facility builds on AFC’s earlier engagements in Asia. The Corporation first entered Japan’s market in 2019 with its debut Samurai loan and later guaranteed Egypt’s ¥75 billion Samurai bond in 2023, a move that gave Japanese investors more direct exposure to African sovereign-linked assets.
Earlier this year, the Japan Credit Rating Agency reaffirmed AFC’s A+ (Stable) rating, helping solidify its reputation among Japanese lenders.
The Corporation also recently repaid its 2022 Samurai line valued at about $419 million on maturity on schedule, a factor bankers say strengthened confidence in its credit quality.
Over the past decade, AFC has raised more than $1.3 billion across Asia, tapping lenders in China, India, Korea, and Japan as part of its effort to diversify funding sources.
Executives say Asia has become one of the most reliable regions for long-term infrastructure financing, especially as global capital flows show greater interest in climate-focused and development-linked investment.
Japanese banks deepen ties with the corporation
“Japan remains a strategic market for AFC,” said Banji Fehintola, Executive Board Member and Head of Financial Services. “The strong support from Japanese lenders shows the level of confidence we have built over the years.
This transaction strengthens our balance sheet and widens our global investor base as we continue to mobilize capital for Africa’s infrastructure needs.”
Mizuho Bank, MUFG Bank, and SMBC Bank International acted as Mandated Lead Arrangers and Bookrunners. Bankers familiar with the process said AFC’s lender roadshow during the Tokyo International Conference on African Development (TICAD 9) in August drew wide interest and helped secure commitments early in the syndication.
Asia broadens its role in Africa’s development finance
Several Asian lenders participated for the first time, including Bank of Taiwan, China Construction Bank Corporation, First Commercial Bank, Taiwan Business Bank, The Chiba Bank, The Shizuoka Bank, and The Yamanashi Chuo Bank.
Their entry highlights expanding Asian interest in African sectors such as transport, electricity generation, logistics, and industrial parks.
Proceeds from the new facility will support AFC’s general corporate activities, with funds expected to flow into projects involving renewable power, logistics corridors, data infrastructure, and industrial development. Executives say the Corporation’s priority is to back projects that strengthen economic resilience and create long-term regional value.
