Africa Finance Corporation (AFC) has gotten a loan facility worth $300m from the Export-Import Bank of China (CEXIM).
A breakdown shows that it is a $200m 5-year loan and a $100m 5-year stand-by facility for a general corporate purpose.
The AFC said this in a statement where it noted that the facility from CEXIM marks AFC’s inaugural financing facility from the People’s Republic of China (PRC).
“It has also been agreed that the signing of the facility agreement shall mark the first step into what will be a long and beneficial relationship with CEXIM, including AFC’s support to CEXIM’s Africa strategy, looking at their portfolio of assets and advising them on how to optimise its loan book on the continent,” the statement said.
“In the last two decades, China has grown from a relatively small investor to becoming one of Africa’s largest trading partners today.
“This facility is therefore not only a milestone for the Corporation and its strategy for the Far East, but also marks a natural evolution in the growing financial sophistication of China in Africa, a necessary development required to accelerate Africa’s journey towards closing the infrastructure deficit.