This investment aims to strengthen economic resilience across Africa by supporting essential trade finance activities, fostering agricultural development, and addressing food security challenges.

The TDB, with over $5 billion in assets, plays a crucial role in financing and promoting trade, regional integration, and sustainable development on the continent.

They achieve this through trade finance, project and infrastructure finance, asset management, and business advisory services.

This BII investment will empower TDB to provide financial support to local businesses and financial institutions in key African markets.

“This investment highlights the UK government’s commitment to supporting economic and agricultural development across Africa,” said Andrew Mitchell, the UK’s Minister of State for Development and Africa.

“The funding will help lower trade barriers, enabling businesses to expand, access resources, and tackle food security.”

The collaboration between BII and TDB underscores their shared goal of empowering vital economic sectors, particularly small and medium-sized enterprises, to drive inclusive growth across Africa.

Many African economies face currency depreciation, rising inflation, and debt challenges, further exacerbated by global events like the Russia-Ukraine conflict.

The financing reflects TDB’s growing collaboration with financial institutions, recognizing them as key partners in boosting trade.

“Our collaboration with TDB underscores our commitment to bolstering resilient economies across Africa,” said Seema Dhanani, head of the Kenya office at BII.

“This partnership provides vital liquidity and deepens access to finance.”

Admassu Tadesse, TDB Group President and Managing Director, highlighted the partnership’s importance: “TDB has been playing a crucial role in trade finance, contributing to essential commodity security in agriculture and healthcare. This is our fourth facility with BII, and we are pleased to continue building this strategic partnership to address ongoing challenges and enhance food security.”

This landmark transaction, commemorated at an event in Dubai, is a significant milestone in AFC’s unwavering commitment to develop critical infrastructure projects across the continent by enhancing its financial flexibility and diversifying its investor base.

Testament to AFC’s appeal in global capital markets and the Corporation’s pivotal role in fostering economic growth and industrialisation in Africa, leading international financial institutions including First Abu Dhabi Bank PJSC, Mashreqbank PSC, MUFG Bank and Standard Chartered collectively acted as Global Coordinators, with the Industrial and Commercial Bank of China (London Branch) acting as China Coordinator. Abu Dhabi Commercial Bank PJSC, Emirates NBD Bank PJSC, Mizuho and Sumitomo Mitsui Banking Corporation acted as Initial Mandated Lead Arrangers and Bookrunners. Additionally, Bank of China and Société Générale S.A acted as Initial Mandated Lead Arrangers.

Initially launched at US$1 billion, the three-year syndicated loan was upsized after being oversubscribed by 49%, underscoring global investor confidence in AFC’s track record, creditworthiness, and its ability to navigate the current economic landscape marked by evolving global complexities. Proceeds from the loan will be deployed to advance AFC’s mission to consistently deliver fast and sustainable solutions to close Africa’s infrastructure gap and unleash the continent’s potential, leading to prosperity for all Africans.

“The global loan market’s overwhelming interest in Africa’s growth story is evident in the large pool of lenders that supported this syndication, making it AFC’s largest ever,” said AFC’s President & CEO, Samaila Zubairu.

‘’This is a significant endorsement of our commitment to ensure that infrastructure projects support local processing and value capture, thereby providing the much needed impetus to African industrialisation, enhanced export earnings and job creation.’’

AFC’s position as the pre-eminent partner of choice between African and global stakeholders and investors for mutually beneficial outcomes reflects the Corporation’s relentless dedication to shaping a brighter and prosperous tomorrow for Africa and Africans.

Financial institutions including Société Générale, Bank Muscat and Intesa Sanpolo Bank Luxembourg S.A. joined the syndicate as first-time lenders, showcasing AFC’s ability to build a global coalition of investors confident in the Corporation’s strong fundamentals as one of the highest investment-grade institutions in Africa.

On the back of its A3 credit rating by Moody’s, AFC has made significant strides in diversifying its funding sources in recent years.

In 2023, the Corporation orchestrated a US$625 million syndicated loan, its second largest, with lenders predominantly from the Middle East and Asia.

AFC also secured a US$350 million long-term line of credit from the African Development Bank (AfDB) and a EUR50 million loan facility agreement with the Italian development finance institution, Cassa Depositi e Prestiti SpA (CDP).

Both agreements were signed on the sidelines of COP28 in Dubai. Additionally, the Corporation received a US$400 million from the Exim Bank of China.

Distributed by APO Group on behalf of Africa Finance Corporation (AFC).

This funding aims to accelerate the implementation of the ongoing Post-Covid-19 Food and Nutritional Security Project (Presan-PC).

Presan-PC specifically targets small-scale producers, aiming to sustainably increase their agricultural output and incomes.

The AfDB’s grant, approved in March 2024, will focus on enhancing water supply through various infrastructure projects.

The Senegalese government plans to utilize the AfDB grant to construct boreholes, solar-powered pumping stations, water retention structures, and lowland development works. These improvements aim to directly address water scarcity challenges faced by farmers.

The allocated funds will also go towards establishing new drinking water supply systems. This initiative prioritizes improved access for women and young people involved in agriculture.

Presan-PC expands upon the previous food security support project (Pasa-LMK) and targets the Louga, Matam, and Kaffrine regions.

The project will also reach similar areas in the Matam region and departments of Koumpentoum (Tambacounda) and Nioro (Kaolack).

An estimated 31,000 households, or roughly 310,000 people, are expected to benefit from the project’s reinforced water infrastructure. This improvement is anticipated to lead to increased harvests and higher incomes for these small-scale producers.

Presan-PC has garnered additional support from the Office chérifien des phosphates (OCP Group) with a contribution of $4.57 million.

The Senegalese government and participating farms are also contributing $1.29 million and $370,000 respectively.