Africa Finance Corporation (AFC) is a pan-African multilateral development finance institution established in 2007 to bridge Africa's infrastructure investment gap through the provision of debt and equity finance, project development, technical and financial advisory services.
AFC finances infrastructure projects in Africa, focusing in particular on power, transportation, telecommunications, heavy industry and natural resources (oil, gas and mining).
AFC is majority-owned by private investors, the bulk of which are African financial institutions, which own 47.6% of the corporation. A further 42.5% is owned by the Central Bank of Nigeria. AFC's fourteen members, in order of accession, are Nigeria, Guinea Bissau, Ghana, Sierra Leone, Gambia, Liberia, Guinea, Chad, Cape Verde, Gabon, Côte d'Ivoire, Rwanda, Uganda, Djibouti and Kenya.
As of September 2016, AFC has invested US$4.5 billion in projects in 26 African countries.
Video Africa Finance Corporation
History
Early projects
Africa Finance Corporation (AFC) was launched in December, 2007 by Chukwuma Soludo, then governor of the Central Bank of Nigeria (CBN), with US$2 billion of authorised share capital.
In June, 2009 AFC agreed an equity financing deal with a consortium of investors in the US$240 million Main One Cable System, a 7,000 km submarine fibre-optic cable connecting West Africa to Europe.
By July 2009, it was reported by Reuters that AFC had US$180 million invested in oil and gas, telecoms, transport and airline projects - mainly in Nigeria.
In September 2011, the corporation partnered with the African Export-Import Bank (Afreximbank) and Banque Internationale pour l' Afrique Occidentale - Côte d'Ivoire (BIAO-CI) in a US$320 million trade finance facility to finance the importation, processing and refining of crude oil by Societe Ivoirienne de Raffinage (SIR).
Power generation
In June 2013, AFC announced its support for privatisation of the Nigerian power sector, providing a US$215 million debt financing facility for the acquisition of the Ughelli Power plc by Transcorp. The previous month it had joined Lagos-based Vigeo and India's Tata Power in a consortium which successfully bid US$129 million for Benin Distribution Company. In August 2013, AFC provided a US$170 million loan facility to Nigerian firm Mainstream Energy Solutions Limited (MESL) in its successful bid for the 1,338 MW Kainji Hydroelectric power plant in Niger State, Nigeria.
At the same time it was invited to become a private sector partner in the US $7 billion USAID-funded 'Power Africa' initiative announced by US President Obama in Cape Town. AFC has since invested US$250 million and leveraged an additional US$1billion of investments in the power sectors of Ghana, Kenya and Nigeria.
In December 2014, AFC took a 23.2% stake in Mozambican power developer Ncondezi Energy.
Also in December 2014, AFC became the largest investor and lead developer in the US$900 million Kpone Independent Power Project (Kpone IPP) in Ghana, which comprises a 350MW gas turbine, a substation and fuel storage.
In July 2015, the corporation signed a joint development agreement with the Ivorian project company Ivoire Hydro Energy SA (IHE) to build a 44MW hydroelectric power plant in Singrobo, Côte d'Ivoire.
The same month AFC became the first African development finance institution to be accredited as a partnering institution by the Green Climate Fund.
In June 2016, AFC and institutional investor Harith General Partners merged their power sector assets to form a new entity combining renewable and non-renewable power generating assets in Africa. The new joint venture, which supplies power to over 30 million people, has more than US$3.3billion in assets - including Kpone Independent Power Project in Ghana, Azura Edo in Nigeria and Lake Turkana Wind Power in Kenya - with a combined gross operational and under-construction capacity of 1,575 MW.
Maps Africa Finance Corporation
Financing
AFC signed its first loan - a US$50 million bilateral deal with Standard Bank - in July 2011. The following year the African Development Bank (AfDB) approved a US$200 million line of credit to AFC with the mandate to catalyse investments and help bridge Africa's infrastructure gap.
In October 2013, AFC launched its first syndicated loan - a US$250 million deal with Citibank, Rand Merchant Bank, Standard Bank, and Standard Chartered Bank - to finance trade projects.
In March 2014, the corporation received its first international credit rating from Moody's Investors Services, which assigned an A3 long-term foreign currency debt rating.
In April 2015, AFC issued a five-year debut US$750 million Eurobond, attracting US$4.7 billion in bids from institutional investors across Asia, Europe and the US. The bond issue was the first under a US$3 billion global medium-term note programme.
In June 2016, AFC borrowed US$150 million for 15 years from KfW, for onward lending in the sectors of power, telecommunications, transport and heavy industry.
In January 2017, AFC issued its maiden US$150 million sukuk, which attracted subscriptions of up to US$230 million .
In April 2017, AFC issued a US$500 million 7 year Eurobond. The Corporation's second Eurobond, it was a five times over-subscribed, attracting US$2.4 billion from 231 investors across the Middle East, Asia, the United Kingdom, Europe and the United States .
Projects
Power
- Cen Power Kpone IPP in Ghana
- Cabeolica Wind farm in Cape Verde
- 450MW IPP In Republic of Benin
- 350MW IPP in Ghana
- 300MW IPP in Mozambique
- Technical Adviser to the Central Bank of Nigeria on its US$2 billion Power and Aviation Intervention *Fund (PAIF)
- AFC/Harith Merger
- Singrobo Hydro Power Plant
- Kenya Power & Lighting Company
Transport & Logistics
- Henri Konan Bedie Bridge in Côte d'Ivoire
- Ethiopian Airline Expansion
- Bakwena Toll Road in South Africa
- Ghana Airport Company
- Port d' Abidjan
- Financial Adviser to Nigeria Sovereign Investment Authority (NSIA) on the Second Niger Bridge
- Olam Gabon Special Economic Zone (GSEZ)
Heavy Industries
- ARM Cement (Formerly Athi River Mining Limited)
Telecommunications
- Main One cable system
- SAIF acquisition, South Africa
Natural Resources
- Seven Energy
- Megadrill Services Limited
- Société Nationale des Pétroles du Congo, Republic of Congo
- Bonny Gas Transport
- Glencore/Société des Hydrocarbures du Tchad
- Vivo Energy
- Shalina Resources Limited
- New Age (African Global Energy)
- Alufer Mining Limited
- Carbon Holdings Limited
AFC's shareholders include sovereign African governments and African banks, as well as private equity funds and other corporate investors. The following countries and institutions are members of AFC (as of July 2016).
Board of directors
As of April 2016, the following individuals comprise the Board of Directors of AFC:
- Joseph Nnana - Chairman of the Board
- Andrew Alli - President and Chief Executive Officer
- Adesegun A. Akin-Olugbade - Executive Director and General Counsel
- Oliver Andrew - Executive Director and Chief Investment Officer
- Sanjeev Gupta - Executive Director, Financial Services
- Roosevelt Ogbonna - Group Deputy Managing Director, Access Bank plc (representing Access Bank plc)
- Charles Kie - Managing Director Ecobank Nigeria Limited. (representing Ecobank Nigeria Limited)
- Ebenezer Onyeagwu - Executive Director Zenith Bank plc (representing Zenith Bank plc)
- Emeka Emuwa - Group Managing Director, Union Bank of Nigeria plc (representing Union Bank of Nigeria plc)
- Tunde Lemo - Deputy Governor Operations, Central Bank of Nigeria (representing Central Bank of Nigeria)
- Adesola Kazeem Adeduntan - Group Managing Director/CEO, First Bank of Nigeria Ltd. (representing First Bank of Nigeria Ltd.)
- Lawrence Tung - Group Managing Director, WEMPCO Group (representing WEMPCO Group)
- Robert Tung - Director, Gloria Investments Limited (representing Gloria Investments Limited)
- Lamido Yuguda - Director, Reserve Management, Central Bank of Nigeria (representing Central Bank of Nigeria)
- Grant Harris - Independent Director (CEO Harris Africa Partners)
Management team
As of April 2016, the following individuals comprise AFC's senior management team:
- Andrew Alli - President and Chief Executive Officer
- Adesegun Akin-Olugbade - Executive Director and General Counsel
- Oliver Andrews - Chief Investment Officer
- Ayotunde Anjorin - Chief Financial Officer
- David Johnson - Chief Risk Officer
Credit rating
In March 2014, AFC received its first international credit rating from Moody's Investors Service, with an A3 (long term) and P2 (short term) foreign currency debt rating. This credit rating was reaffirmed in April 2015 and again in May 2016.
See also
- African Development Bank
- PTA Bank
- East African Development Bank
References
External links
- AFC Homepage
Source of the article : Wikipedia
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