KfW reaches loan agreement with Africa Finance Corporation
One of Africa’s highest graded investment institutions has entered into a US$150 million loan agreement with the
KfW Development Bank
after the
Africa Finance Corporation
fulfilled the Frankfurt-based lender’s due diligence and credit appraisals. “KfW is excited about Africa’s growth potential,” said Jan Martin Witte, Head of Division for Infrastructure at KfW Development Bank. “To enable that growth, the continent will have to invest heavily in power, transport and other infrastructure sectors. KfW is proud to build [new] partnerships with entrepreneurial institutions that can drive development and progress on the continent.” The timing of the loans comes shortly after the Africa Finance Corporation received an A3/P-2 rating from Moody’s, with finances earmarked for use in refinancing projects across the corporation’s key priority sectors: power, telecommunications, transport, and heavy industries. The Africa Finance Corporation is a multilateral institution that was established in 2007 and has a current capital base of US$2.9 billion disbursed across various private sector infrastructure investments across Africa, making it the second highest investment grade-rated multilateral financial institution on the continent. In recent weeks, the corporation announced a joint venture with Harith General Partners that will see the merging of several key power assets, including interests in
Cenpower
, owner of the Kpone Independent Power Project under construction in Ghana, and a
Cabeolica
wind farm that is responsible for providing 20 percent of the energy needs of Cape Verde. The new joint venture’s near-term portfolio supplies reliable energy to over 30 million people in at least 10 African countries and has a combined gross operational and under-construction capacity of 1,575 MW.
By Jack Aldane
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Photo: SASOL