Africa Finance Corporation Secures US$400 Million Shariah-Compliant Facility to Boost African Infrastructure
Africa Finance Corporation (AFC) (www.AfricaFC.org), the continent’s premier infrastructure solutions provider, has successfully raised US$400 million through a Shariah-compliant Commodity Murabaha facility.
This marks AFC’s strategic return to the Islamic finance market after eight years, reinforcing its commitment to diversifying funding sources and expanding ethical and sustainable financing for African infrastructure development.
Initially launched at US$300 million, strong investor demand led to a 47% oversubscription, increasing the facility size to US$400 million. The transaction attracted participation from eleven prominent Islamic financial institutions, including new partnerships with Abu Dhabi Islamic Bank PJSC, Al Rajhi Bank, and Emirates Islamic Bank.
“This transaction reaffirms AFC’s role as a bridge between global capital and Africa’s most urgent infrastructure needs,” said Samaila Zubairu, President and CEO of AFC. “The overwhelming demand demonstrates strong confidence in our investment strategy and Africa’s increasing importance in the Islamic finance landscape. By expanding our international funding sources, we continue to create innovative financial solutions to drive impactful and sustainable development across the continent.”
The facility was structured in compliance with the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) standards, ensuring adherence to global Islamic finance principles. Emirates NBD Capital Limited, First Abu Dhabi Bank PJSC, and SMBC Bank International Plc served as Joint Lead Arrangers and Bookrunners.
Islamic finance, particularly Murabaha structures, is widely regarded as ethical and sustainable due to its focus on asset-backed financing, risk-sharing, and avoidance of speculative practices. These principles align with AFC’s mission to foster responsible investment that drives long-term economic stability in Africa.
“Islamic finance plays a growing role in our funding strategy, helping us tap into a diverse pool of investors who share AFC’s commitment to sustainable and responsible investing,” said Banji Fehintola, Executive Board Member and Head of Financial Services at AFC. “The success of this Murabaha facility highlights the strong appetite for African infrastructure investments and underscores AFC’s ability to structure transactions that meet global investor expectations.”
Proceeds from the 3-year Murabaha financing will support AFC’s mission to accelerate industrialization, infrastructure development, and economic growth across Africa. AFC has been at the forefront of transformative projects in the Middle East and North Africa, including Morocco’s Xlinks project, which aims to supply sustainable electricity from the Sahara to the UK. Through its acquisition of Lekela Power, AFC, in partnership with Cairo-based Infinity Power, has become Africa’s largest investor in clean energy, targeting 3GW of renewable capacity by 2026.
This latest financing follows AFC’s successful US$500 million perpetual hybrid bond issuance in January and its recent credit rating upgrades by S&P Global (China) Ratings and China Chengxin International Credit Rating Co. Ltd (CCXI) in preparation for a potential panda bond issue.
