Lagos, Nigeria–(BUSINESS WIRE)–Italian development finance institution Cassa Depositi e Prestiti SpA (CDP) has granted a first loan of €100 million to Africa Finance Corporation (AFC), the leading provider of infrastructure solutions on the African continent , to facilitate investments in renewable energy, energy efficient projects and climate-resilient infrastructure.
CDP, with assets totaling over €400 billion, provides the bilateral loan to support AFC projects that are urgently needed to transform Africa’s infrastructure to help combat and adapt to the global warming, as well as to catalyze industrialization, create jobs and reduce poverty.
“Building strong partnerships with major international institutions such as Africa Finance Corporation is part of our strategy to scale up impact finance and accelerate the ecological transition in developing countries,” said Antonella Baldino, Head of Cooperation International Affairs and Development Finance at CDP. “It is in this spirit that we welcomed AFC’s recent entry into the International Development Finance Club. By intensifying our commitment in Africa, this operation positions CDP as a partner of choice for regional and local Development Finance Institutions.
The loan agreement supports CDP’s mission to drive economic growth in emerging markets and expand Italy’s global investment footprint and demonstrates European investors’ continued interest in high quality infrastructure on the African continent.
“This historic agreement today marks the beginning of a mutually beneficial relationship between AFC and CDP – Italy’s DFI,” said Samaila Zubairu, President and CEO of AFC. “Access to funding from highly rated institutions, like the CDP, helps us strengthen our commitment to invest in projects that simultaneously combat climate change and develop the critical infrastructure needed for Africa’s economic growth, while offering competitive and reliable returns to investors.”
AFC has invested over $10 billion in projects spanning 35 African countries over 15 years. The Company draws capital from a wide range of international investors and lenders as part of a strategy to maintain its A3 investment grade credit rating at Moody’s. CDP joins AFC’s pool of financing partners including international development finance institutions such as German Development Bank KfW, India Exim Bank and a syndication of German DEG, Dutch FMO and French Proparco , demonstrating global investors’ confidence in AFC’s strong credit profile and strategy to deliver risk-free transformational projects for Africa.
A focus on sustainably reducing Africa’s power deficit led to AFC’s agreement last month to jointly acquire Lekela Power, the continent’s largest independent renewable power producer, with plans to double production capacity within four years. AFC’s approach to balancing the need to reduce emissions in Africa with critical development imperatives is set out in a recently released white paper titled Africa COP Roadmap: A Pragmatic Path to Net Zero. The report was widely endorsed by leaders such as Ghanaian President Nana Akufo-Addo, Nigerian Vice-President Yemi Osinbajo and Chairman of the African Group of Negotiators at COP26, Tanguy Gahouma.
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Notes to Editors
About AFC
AFC was established in 2007 to be the catalyst for private sector-led infrastructure investment across Africa. AFC’s approach combines specialized sector expertise with a focus on financial and technical advisory, project structuring, project development and venture capital to meet Africa’s infrastructure development needs and drive a sustainable economic growth.
Fifteen years later, AFC has earned a reputation as the partner of choice in Africa for investing in and delivering high-quality instrumental infrastructure assets that deliver essential services in the core infrastructure sectors of power, natural resources, heavy industry, transport and telecommunications. AFC has invested over US$10 billion in 35 African countries since its inception.
www.africafc.org
