This marks AFC’s strategic return to the Islamic finance market after an eight-year hiatus, reinforcing its commitment to broadening funding sources and enhancing access to ethical and sustainable financing solutions for Africa’s infrastructure needs.

The facility, initially set at $300 million, was expanded to $400 million following an impressive investor response, which resulted in a 47% oversubscription.

A total of eleven Islamic financial institutions participated in the transaction, including new collaborations with Abu Dhabi Islamic Bank PJSC, Ajman Bank PJSC, Al Rajhi Bank, Emirates Islamic Bank, Sharjah Islamic Bank PJSC, and Warba Bank K.S.C.P.

Samaila Zubairu, President and CEO of AFC, emphasized the significance of the transaction, stating:

“This transaction reaffirms AFC’s role as a bridge between global capital and Africa’s most urgent infrastructure needs. The overwhelming demand demonstrates strong confidence in our investment strategy and Africa’s increasing importance in the Islamic finance landscape.”

Emirates NBD Capital Limited, First Abu Dhabi Bank PJSC, and SMBC Bank International Plc served as Joint Lead Arrangers and Bookrunners, strengthening AFC’s relationships with major global financial institutions.

This latest transaction builds on AFC’s track record in Islamic finance, following its pioneering $230 million Sukuk issuance in 2017, the first by an African supranational entity.

AFC continues to diversify its funding sources through innovative financial instruments.

Earlier this year, the corporation raised $500 million from its first perpetual hybrid bond. It also secured the highest credit ratings from S&P Global (China) Ratings and China Chengxin International Credit Rating Co. Ltd (CCXI), positioning itself for a potential panda bond issuance.

Structured in accordance with the standards set by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), the new facility ensures full compliance with Islamic finance principles.

These guidelines emphasize asset-backed financing, risk-sharing, and the avoidance of speculative practices, aligning with AFC’s broader mission of promoting responsible investment and sustainable development in Africa.

Banji Fehintola, Executive Board Member and Head of Financial Services at AFC, highlighted the importance of Islamic finance in the corporation’s strategy.

“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. 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.”

The three-year Murabaha financing will be directed toward key infrastructure initiatives aimed at accelerating industrialization, economic growth, and sustainable development across Africa.

Among AFC’s transformative projects is Xlinks in Morocco, which seeks to deliver renewable energy from the Sahara to the United Kingdom.

Additionally, AFC’s acquisition of Lekela Power, in partnership with Cairo-based Infinity Power, has positioned the corporation as Africa’s leading investor in renewable energy, targeting 3GW of clean energy capacity by 2026.

Established in 2007, AFC has played a critical role in addressing Africa’s infrastructure challenges.

The corporation specializes in financial and technical advisory, project structuring, and risk capital to drive high-impact infrastructure development.

With investments surpassing $15 billion across 36 African countries and 45 member states, AFC continues to be a key force in unlocking Africa’s economic potential through strategic infrastructure investments.