AFC Closes USD 400 M Shariah-Compliant Facility To Power Africa’s Infrastructure Growth
Africa Finance Corporation (AFC) has made a powerful return to the Islamic finance market, closing a USD 400 M Shariah-compliant Commodity Murabaha facility—its first in eight years.
The transaction, initially launched at USD 300 M, saw overwhelming demand, leading to a 47% oversubscription and an increase to USD 400 M. Investors from eleven leading Islamic financial institutions participated, including new partnerships with Abu Dhabi Islamic Bank, Ajman Bank, Al Rajhi Bank, Emirates Islamic Bank, Sharjah Islamic Bank, and Warba Bank.
For AFC, this marks more than just a financial milestone. It is a reflection of the confidence global investors have in its vision and strategy for Africa. It also reinforces AFC’s track record in Islamic finance, which includes the USD 230 M Sukuk it issued in 2017—the first-ever by an African supranational entity.
The proceeds from this financing will support AFC’s efforts to accelerate industrialization, infrastructure development, and economic growth across the continent. Among the projects benefiting from this funding is Xlinks in Morocco, a groundbreaking initiative that will supply renewable electricity from the Sahara to the UK. AFC is also deepening its commitment to clean energy through its investment in Lekela Power, a partnership with Infinity Power, positioning it as Africa’s largest investor in renewable energy, with a target of 3GW of capacity by 2026.
These projects, along with AFC’s broader infrastructure portfolio, align with its mission to drive sustainable and responsible investment across the continent.
The Murabaha facility was structured in accordance with AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions) standards, ensuring compliance with global Islamic finance principles, which emphasise asset-backed financing, risk-sharing, and the prohibition of speculation. These values align with AFC’s commitment to responsible investment and long-term infrastructure development that fosters economic stability.
The facility was arranged by Emirates NBD Capital Limited, First Abu Dhabi Bank, and SMBC Bank International, reinforcing AFC’s ties with global financial powerhouses.
The deal follows a series of major funding achievements for AFC. Just in January, it raised USD 500 M from its first perpetual hybrid bond and received top-tier credit ratings from S&P Global (China) Ratings and China Chengxin International Credit Rating Co. Ltd (CCXI), ahead of a potential panda bond issuance.
Samaila Zubairu, President and CEO of AFC, sees this as a significant step in mobilizing global capital for Africa. “This transaction reaffirms AFC’s role as a bridge between global capital and Africa’s most urgent infrastructure needs. The strong demand is a testament to our ability to structure investments that align with ethical and sustainable finance while delivering real impact across the continent.”
With over USD 15 B invested across 36 African countries, AFC has built a reputation as the partner of choice for delivering large-scale infrastructure projects. It remains a catalyst for development, leveraging global capital to fund projects that power industries, connect communities, and drive economic growth.
The recent financing is part of its broader strategy to expand access to ethical and sustainable funding, ensuring that Africa’s future is built on a foundation of resilience, innovation, and long-term prosperity.
