Lagos, 17 November 2022: Africa Finance Corporation (AFC), the leading infrastructure solutions provider in Africa, today announces the successful closing of a 5-year US$100 million loan facility from the Korea Development Bank (KDB).

The credit from South Korea’s state-owned policy bank follows a recent US$389 Samurai loan facility from Japanese investors in October, as AFC leverages Asian capital markets. KDB acted as Mandated Lead Arranger in a US$400 million syndicated loan facility raised by AFC in 2021 to support post-pandemic recovery in Africa. This new bilateral loan facility from KDB will support mid-term liquidity as AFC works to deliver fast and sustainable solutions to close Africa’s infrastructure gap and unleash the continent’s prosperity. 

“We are very proud to be partnering with AFC and assisting it in its mission across Africa, as well as executing on our strategy to grow across the region,” said Philip Smith, Director and Head of Africa and the Middle East for KDB. “This facility not only builds on the relationship between our organisations, it helps to facilitate economic relations between South Korea and Africa.” 

The loan facility is the latest example of AFC’s funding diversification strategy and shows the evolution in the role South Korea can play in the economic development of Africa. AFC issued its first Korean-focused instrument in 2019 with a US$140 million Kimchi term loan facility, which was well received by the South Korean debt market. In recent years, Korea has continued to shift from an aid approach to favour trade and investment in Africa, pledging US$600 million in financing in 2021 under the Korea-Africa Energy Investment Framework (KAEIF). 

Banji Fehintola, Senior Director & Treasurer of AFC, said: “We are pleased to have secured this loan facility from a highly rated finance institution such as the Korea Development Bank. Our success signifies Asia and, in particular, South Korea’s growing appetite for African investments and we at AFC are committed to continue being the bridge that connects investors to Africa. We welcome KDB’s commitment to its Africa strategy and look forward to a continued partnership with them and other global investors keen on playing a part in Africa’s transformation story.”