Bank of Africa UK, acting as the sole lead arranger and bookrunner, has successfully raised $300 million from a consortium of seven leading Indian banks to support Africa Finance Corporation (AFC) in its mission to finance large-scale infrastructure projects across Africa. This landmark transaction highlights a growing global interest in African infrastructure, with AFC positioning itself as a key player in mobilizing international capital for the continent’s development needs.
The deal was celebrated on October 29, 2024, at a ceremony in Dubai attended by representatives from Bank of Africa UK, AFC executives, and key officials from the seven participating Indian banks: State Bank of India, Canara Bank, Bank of India, UCO Bank, Indian Bank, SBI, and Indian Overseas Bank.
A milestone for Africa-India financial collaboration
The $300 million fundraising was oversubscribed by 50%, underscoring AFC’s increasing capacity to attract capital from around the world and reinforcing Bank of Africa’s role as a premier pan-African bank committed to international fundraising for African progress. AFC’s ability to secure investments from a new region reflects its strategy of diversifying funding sources, an approach aimed at strengthening Africa’s financial and infrastructural resilience.
Said Adren, CEO of Bank of Africa UK, emphasized the significance of the transaction: “We have long believed in the potential of attracting capital to Africa from new regions, such as India. This successful transaction not only validates that belief but paves the way for future capital flows into Africa.”
Tailoring solutions for Indian investors
Zineb Tamtaoui, General Manager of Bank of Africa’s DIFC Branch, underscored the meticulous planning and expertise required to complete the deal, noting the unique demands of Indian lenders. “Indian lenders have particular requirements, and we are thrilled to have used our expertise to bring this historic transaction to fruition for AFC,” she said.
This successful collaboration sets a precedent for future cross-regional investments, reflecting Africa’s potential as a valuable destination for emerging market capital. The involvement of India’s major banks signals a promising shift in global interest toward supporting Africa’s infrastructure and development agenda.
Looking ahead: A model for future capital flows into Africa
As AFC strengthens its partnerships across Asia, this deal illustrates a broadening of the African financial landscape, opening up new opportunities for infrastructure funding. It not only enhances the continent’s economic landscape but also represents a significant milestone in AFC’s efforts to build a robust, sustainable infrastructure network in Africa with global support.
This collaboration with Indian banks highlights Africa’s appeal to international investors and marks an important step toward achieving long-term growth and self-sufficiency for the continent’s infrastructure sectors.
