AFC- FMO PROJECT DEVELOPMENT
Status: Completed investmentWhy disclosure?
FMO is committed to making publicly available relevant investment information that informs stakeholders and enables them to engage directly with FMO on its investments which, in turn, enhances our investment decisions, the design and implementation of projects and policies, and strengthens development outcomes. Learn more
In case of questions
In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Africa Finance Corporation (AFC) is an African multilateral financial institution (FI) that was established in 2007 to help address Africa's infrastructure needs, while seeking a competitive return on capital for its shareholders. The principal shareholders of AFC are the Central Bank of Nigeria (42.5% stake), seven leading Nigerian Banks (43.7%) and several leading Nigerian corporates. The current AFC member states, in which AFC has preferential credit status, are Nigeria, Ghana, Guinea-Bissau, Guinea, Liberia, Sierra Leone, Chad, and the Gambia
What is our funding objective?
FMO's funding will go towards a framework Joint Venture Agreement with AFC for the establishment of a US$15 mln infrastructure project development facility (PDF or facility). FMO and AFC will each commit US$7.5 mln, with the purpose of financing AFC-managed early stage development projects in the field of transport, power, water, oil and gas downstream/midstream, agribusiness and social infrastructure. Eligible projects that comply with FMO's investment criteria are expected to have a good potential for reaching bankability and financial close. The management cost facilty is an annual management fee contribution amount deducted from the investment facility payable by FMO to AFC as compensation for managing the investment facility.
Why do we fund this investment?
This project affords an efficient partnership opportunity with AFC, a reputable, dynamic and financially strong pan-African multilateral FI, with a dedicated and experienced team for the development of infrastructure projects and sound risk management policies (financial, goernance, E&S and operations control). The envisaged cooperation will support efficient and risk-diversified access to the Infrastructure Development Fund's target market, with AFC's and FMO's interests aligned. Early stage involvement will secure important spin-offs for playing lead roles in the structuring and finance of infrastructure projects.
More investments
| Date | Total FMO financing |
|---|---|
| 12/21/2020 | USD 0.10 MLN |
| 1/13/2021 | USD 1.50 MLN |
| 11/21/2012 | USD 7.50 MLN |
- Website customer/investment
- http://www.africafc.org
- Region
- Africa
- Country
- Africa
- Sector
- Financial Institutions
- Effective date
- 1/10/2013
- End date
- 4/28/2020
- Total FMO financing
- USD 0.75 MLN
- Funding
- Building Prospects
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B