Emirati banks arrange AED 937.5 mn loan for AFC: The Africa Finance Corporation (AFC) has secured its inaugural sustainability-linked term loan worth AED 937.5 mn, backed by a syndicate of Emirati banks, according to a statement. The loan diversifies its funding base by tapping into the local AED market, and linking sustainability metrics to “signaling to investors and stakeholders the importance of environmental responsibility to its infrastructure investment mandate.”

Who’s involved? Abu Dhabi Commercial Bank, Emirates NBD Capital, First Abu Dhabi Bank, our friends at Mashreq, and the National Bank of Ras Al Khaimah acted as initial mandated lead arrangers and bookrunners. Mashreq also acted as the global coordinator and documentation agent, while First Abu Dhabi Bank served as the sustainability coordinator, and Emirates NBD Bank acted as the facility agent.

Not AFC’s first rodeo with Emirati lenders: Last year First Abu Dhabi Bank acted as the global coordinator for AFC’s USD 300 mn sukuk, which was scheduled to be issued before the end of last year and came as the institution was looking increasingly to the Gulf for financing on development and infrastructure projects.

Background: The AFC also secured a first-time USD 500 mn hybrid capital issuance and a USD 400 mn Murabaha facility this year, in addition to a USD 1.2 bn syndicated loan last year.

Tags: