AFRICA FINANCE CORPORATION
Status: Approved investmentWhy disclosure?
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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 independent, multi-lateral African financial institution, established in 2007. The institution is majority privately-owned, even though the largest shareholder is the Central Bank of Nigeria. AFC’s primary objective is to provide finance for infrastructure, industry and natural resources projects in African member states. The institution currently has exposures in over 30 African countries. AFC has been a client of FMO since 2012.
What is our funding objective?
By providing this long term debt facility together with DEG and Proparco, FMO enables AFC to on-lend to increase its loan portfolio to private sector companies and projects throughout Africa.
Why do we fund this investment?
The proposed transaction is in line with FMO’s mandate to support financial institutions who contribute to the SDGs. As infrastructure is a key impediment for economic growth in many African countries, AFC is contributing to supporting decent work and economic growth and industry, innovation and infrastructure. In addition, AFC has considerable exposures to renewable energy projects.
What is the Environmental and Social categorization rationale?
AFC is classified as E&S risk category A, due to large exposure in infrastructure and natural resources projects across Africa. The institution has a well-functioning E&S Management System and adequate E&S governance structures to apply the IFC Performance Standards framework. As part of the transaction, E&S capacity will be expanded to actively monitor the high E&S risk clients, in a growing loan portfolio.
More investments
| Date | Total FMO financing |
|---|---|
| 10/8/2020 | USD 30.00 MLN |
- Website customer/investment
- http://www.africafc.org
- Region
- Africa
- Country
- Africa
- Sector
- Financial Institutions
- Publication date
- 10/15/2020
- Effective date
- 7/5/2021
- Total FMO financing
- USD 60.00 MLN
- Funding
- FMO NV
-
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) - A