Africa Finance Corporation

Africa Finance Corporation
Private
Industry Finance
Founded 2007
Headquarters 3a Osborne Road
Ikoyi, Lagos State, Nigeria
Key people
 Joseph Nnana (Chairman)
Samaila Zubairu (President & CEO)
Products Development Finance Institution
Total assets US$3.4+ billion (2017) [1]
Owner African governments
African banks
Private equity funds
Insurance groups
Website www.africafc.org

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.[2][3][4]

AFC finances infrastructure projects in Africa, focusing in particular on power, transportation, telecommunications, heavy industry and natural resources (oil, gas and mining).[5]

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 nineteen Member States, in order of accession, are Nigeria, Guinea Bissau, Ghana, Sierra Leone, Gambia, Liberia, Guinea, Chad, Cape Verde, Gabon, Côte d'Ivoire, Rwanda, Uganda, Djibouti, Kenya, Zambia, Benin, Malawi and Zimbabwe.[6][7][8]

As of September 2016, AFC has invested US$4.5 billion in projects in 26 African countries.[9]

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.[10]

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.[11][12]

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.[13]

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).[14]

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.[15] 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.[16] 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.[17]

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.[18] AFC has since invested US$250 million and leveraged an additional US$1billion of investments in the power sectors of Ghana, Kenya and Nigeria.[19]

In December 2014, AFC took a 23.2% stake in Mozambican power developer Ncondezi Energy.[20]

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.[21]

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.[6]

The same month AFC became the first African development finance institution to be accredited as a partnering institution by the Green Climate Fund.[22]

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.[23]

Financing

AFC signed its first loan – a US$50 million bilateral deal with Standard Bank – in July 2011.[24] 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.[25]

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.[26]

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.[27]

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.[28]

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.[29]

In January 2017, AFC issued its maiden US$150 million sukuk, which attracted subscriptions of up to US$230 million [30].

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 [31].

Projects

Power

  • Cen Power Kpone IPP in Ghana[32]
  • Cabeolica Wind farm in Cape Verde[33]
  • 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)[34]
  • AFC/Harith Merger
  • Singrobo Hydro Power Plant[35]
  • Kenya Power & Lighting Company

Transport & Logistics

  • Henri Konan Bedie Bridge in Côte d'Ivoire[36]
  • Ethiopian Airline Expansion[37]
  • Bakwena Toll Road in South Africa[37]
  • Ghana Airport Company
  • Port d’ Abidjan[38]
  • Financial Adviser to Nigeria Sovereign Investment Authority (NSIA) on the Second Niger Bridge[39]
  • Olam Gabon Special Economic Zone (GSEZ)[40]

Heavy Industries

  • ARM Cement (Formerly Athi River Mining Limited)[41]

Telecommunications

  • Main One cable system[42]
  • SAIF acquisition, South Africa

Natural Resources

  • Seven Energy[43]
  • Megadrill Services Limited[44]
  • Société Nationale des Pétroles du Congo, Republic of Congo
  • Bonny Gas Transport[45]
  • Glencore/Société des Hydrocarbures du Tchad[46]
  • Vivo Energy
  • Shalina Resources Limited
  • New Age (African Global Energy)[47]
  • Alufer Mining Limited [48]
  • Carbon Holdings Limited [49]

Shareholders

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).[50]

Board of directors

As of April 2016, the following individuals comprise the Board of Directors of AFC:[57]

  • Joseph Nnana – Chairman of the Board
  • Samaila Zubairu – 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)

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Yours faithfully Sir Collins W.Kophy C.E.O Trepios' Co. GH. Ltd.

Management team

As of September 2018, the following individuals comprise AFC's senior management team:[58]

  • Samaila Zubairu – President and Chief Executive Officer[55]
  • Adesegun Akin-Olugbade – Executive Director and General Counsel
  • Oliver Andrews – Executive Director and Chief Investment Officer
  • Sanjeev Gupta - Executive Director, Financial Services
  • Ayotunde Anjorin – Director and Chief Financial Officer
  • David Johnson – Director and Chief Risk Officer[59]

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.[60] This credit rating was reaffirmed in April 2015 and again in May 2016.[61]

See also

References

  1. ↑ http://www.biznisafrica.com/joseph-nnanna-appointed-africa-finance-corporation-chairman/
  2. ↑ Mwaniki, Charles (4 March 2014). "Africa Finance Corporation secures first global rating". Business Daily Africa. Retrieved 15 April 2016.
  3. ↑ Jacks, Mzwandile (3 March 2014). "AFC Gets Moody's Credit Rating". Ventures Africa. Retrieved 15 April 2016.
  4. ↑ Naso, Chelsea (29 April 2015). "Africa Finance Nabs $750M In Debut Eurobond Offer". Law360. New York. Retrieved 15 April 2016.
  5. ↑ Nelthorpe, Tom (30 April 2015). "Africa Finance Corporation prices debut Eurobond". IJGlobal. Sub-Saharan Africa. Retrieved 15 April 2016.
  6. 1 2 Agbo, Ekele Peter (14 July 2015). "Nigeria: AFC to Co-Develop U.S.$ 120 Million Singrobo Hydro Power Plant in Côte d'Ivoire". All Africa. Retrieved 15 April 2016.
  7. ↑ "Côte d'Ivoire becomes 11th member of Africa Finance Corporation". African Markets. 19 October 2015. Retrieved 15 April 2016.
  8. ↑ Eremionkhale, Omono (3 December 2015). "AFC Gets Two New Member Countries in East Africa". Ventures Africa. Retrieved 15 April 2016.
  9. ↑ Njini, Felix (14 September 2016). "Africa Finance Corp. Plans More Eurobonds for Infrastructure". Bloomberg. Retrieved 18 October 2016.
  10. ↑ Marks, Jon; Godier, Kevin (12 January 2007). "SpecialSupplement:Africa-EmergingAssetClass-ADecadeAfterBigDevelopersPulledBack,Sub-Saharan AfricaIsRe-emergingAsAMarketForInfrastructure Finance,WithInnovationsInInternationalAndLocalMarkets" (PDF). The Banker. Retrieved 15 April 2016.
  11. ↑ "Ghana: AFC-financed Main One Submarine Cable Lands". All Africa. 20 May 2010. Retrieved 15 April 2016.
  12. ↑ "Main One Cable progresses with equity financing". TeleGeography. 8 June 2009. Retrieved 15 April 2016.
  13. ↑ Fabi, Randy (15 July 2009). "Nigeria's AFC investments at $180 mln, eyes more". Reuters. Abuja. Retrieved 15 April 2016.
  14. ↑ "Company Announcement: AFC and Afreximbank sign $320m Trade Finance Facility for Processing and Refining of Crude Oil in Cote d' Ivoire". Engineering News. 19 September 2011. Retrieved 15 April 2016.
  15. ↑ Rice, Xan (25 June 2013). "Volatility delays investment from Nigeria sovereign wealth fund". Financial Times. Lagos. Retrieved 15 April 2016.
  16. ↑ Rice, Xan (7 May 2013). "Vigeo: Lagos-based distributor set for long game". Financial Times. Retrieved 15 April 2016.
  17. ↑ Adaramola, Kehinde (5 August 2013). "Powering Nigeria: MESL Partners Investors to Finance Kainji Plant". Ventures Africa. Retrieved 15 April 2016.
  18. ↑ Miller, Scott; Runde, Daniel (1 January 2014). A New Development Agenda: Trade, Development, and Procurement. Rowman & Littlefield. p. 16. ISBN 978-1-4422-2810-8.
  19. ↑ Longman, Nye (30 March 2015). "Africa Finance Corporation announces record profits". African Business Review. Retrieved 15 April 2016.
  20. ↑ "AFC to take stake in Ncondezi Energy". The Business Desk. 15 December 2014. Retrieved 15 April 2016.
  21. ↑ "AFC initiates $900m power project in Ghana". The Guardian. 2 February 2015. Retrieved 15 April 2016.
  22. ↑ "Green Climate Fund completes accreditation of Africa Finance Corporation". Greentechlead.com. 17 July 2015. Retrieved 15 April 2016.
  23. ↑ Cotterill, Joseph (22 June 2016). "Investors combine to create pan-African energy group". Financial Times. London. Retrieved 16 October 2016.
  24. ↑ "Africa Finance Corporation signs maiden loan and plans assault on bond market". Global Capital. 28 July 2011. Retrieved 15 April 2016.
  25. ↑ "AfDB Approves U.S.$ 200M Line of Credit to Africa Finance Corporation for Infrastructure Support". All Africa. 13 March 2012. Retrieved 15 April 2016.
  26. ↑ "AFC in debut syndicated loan success". Trade Finance. 20 December 2013. Retrieved 15 April 2016.
  27. ↑ Saigal, Kanika. "AFC inaugural Eurobond benefirts from Nigeria's post-election relief". Euro Money. Retrieved 15 April 2016.
  28. ↑ "Finance: Africa Corp debut $750 million Eurobond sees heavy demand". The Africa Report. 29 April 2015. Retrieved 15 April 2016.
  29. ↑ Press Release (22 June 2016). "Africa: AFC Receives U.S.$150 Million From KFW Development Bank". Dubai: African Media Agency via AllAfrica.com. Retrieved 26 June 2016.
  30. ↑ http://af.reuters.com/article/investingNews/idAFKBN1581I8
  31. ↑ http://af.reuters.com/article/investingNews/idAFKBN1581I8
  32. ↑ "AFC funded $900m Kpone power plant to be unveiled this week". Ghana Business News. 28 January 2015. Retrieved 16 October 2016.
  33. ↑ "Energy investors merge to create pan-Africa power group". Daily Mail. 22 June 2016. Retrieved 16 October 2016.
  34. ↑ "Global Medium Term Note Programme" (PDF). Irish Stock Exchange. 8 April 2015. Retrieved 16 October 2016.
  35. ↑ "44MW hydroelectric project to come up in Côte d'Ivoire". African Review. 15 July 2015. Retrieved 16 October 2016.
  36. ↑ "Ivory Coast's long-awaited toll bridge opens to traffic". Daily Mail. 21 December 2014. Retrieved 16 October 2016.
  37. 1 2 "Energy investors' big plans for Africa". Business Day. 23 June 2016. Retrieved 16 October 2016.
  38. ↑ "Africa Finance Corporation mobilise 50 millions d'euros pour l'extension du port d'Abidjan" [Africa Finance Corporation mobilises €50million for the extension of port d’Abidjan]. Agence Ecofin (in French). 19 December 2014. Retrieved 16 October 2016.
  39. ↑ "AFC announces investment collaboration with NSIA". nsia.com.ng/. 25 June 2013. Retrieved 16 October 2016.
  40. ↑ "AFC backs Gabonese infrastructure with $140mln". African Capital Digest. 17 April 2016. Retrieved 14 October 2016.
  41. ↑ Mwaniki, Charles (4 March 2014). "Africa Finance Corporation secures first global rating". Business Daily Africa. Retrieved 16 October 2016.
  42. ↑ "Undersea cable set to boost West Africa broadband". Reuters. 2 July 2010. Retrieved 16 October 2016.
  43. ↑ Oguh, Chibuike (8 February 2016). "Africa Finance Corporation set to raise $150 million loan". Financial Nigeria. Retrieved 16 October 2016.
  44. ↑ Shosanya, Mohammed (25 December 2013). "AFC underwrites N11bn swamp rig acquisition by Depthwize". The Daily Trust. Retrieved 16 October 2016.
  45. ↑ "Nigeria: Investors Rally Support for Badagry Deep Seaport". All Africa. 10 July 2015. Retrieved 16 October 2016.
  46. ↑ "Linklaters advises Glencore Energy UK Ltd on a US$1.4bn sale of crude oil pre-financing in Chad". www.linklaters.com/. 21 July 2014. Retrieved 16 October 2016.
  47. ↑ "AFC arranges $425 million loan facility for New Age African Global Energy". Financial Nigeria. 1 July 2016. Retrieved 16 October 2016.
  48. ↑ https://www.miningreview.com/news/international-consortium-develop-alufer-minings-bel-air-bauxite-mine/
  49. ↑ http://www.biznisafrica.co.za/afc-invests-25-million-in-egypts-carbon-holdings/
  50. ↑ AFC (25 February 2016). "Africa Finance Corporation: Who We Are - An Overview". Lagos: Africafc.org (AFC). Retrieved 15 April 2016.
  51. ↑ "Djibouti has become the newest member of Africa Finance Corporation". biznisafrica.co.za. 27 July 2016. Retrieved 27 July 2016.
  52. ↑ Editorial Staff (October 2015). "Gabon Joins Africa Finance Corporation". Africa.com. Archived from the original on 30 December 2015. Retrieved 15 April 2016.
  53. ↑ CRC (20 October 2015). "Côte d'Ivoire becomes 11th member of African Finance Corporation". Climatereporters.com (CRC). Retrieved 15 April 2016.
  54. 1 2 Editorial Staff (November 2015). "Africa Finance Corporation Expands Into East Africa". Africa.com. Retrieved 15 April 2016.
  55. 1 2 3 Lyatuu, Justus (16 December 2015). "Africa Finance Corporation enters Rwanda, Uganda". The Observer (Uganda). Kampala. Retrieved 25 February 2016.
  56. 1 2 Muchira, Njiraini (5 February 2018). "Lender AFC eyes projects with greater capital base". The EastAfrican. Nairobi. Retrieved 6 February 2018.
  57. ↑ AFC (25 February 2016). "Africa Finance Corporation: Who We Are - The Board". Lagos: African Finance Corporation (AFC). Retrieved 25 February 2016.
  58. ↑ AFC (4 September 2018). "Africa Finance Corporation: Who We Are - Management". Lagos: Africa Finance Corporation (AFC). Retrieved 4 September 2018.
  59. ↑ African Media Agency (5 January 2016). "Africa Finance Corporation Welcomes New Chief Risk Officer". Dubai: African Media Agency via AllAfrica.com. Retrieved 25 February 2016.
  60. ↑ Elisa Parisi-Capone, Bart Jan Sebastian Oosterveld (3 March 2014). "Moody's assigns A3/P-2 foreign currency ratings to Africa Finance Corporation; outlook stable". New York City: Moody's Investors Service. Retrieved 25 February 2016.
  61. ↑ "Moody's reaffirms AFC's credit rating with stable outlook". Business Day. Lagos. 16 June 2016. Retrieved 14 October 2016.
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