By Michael Eboh

The Africa Finance Corporation, AFC, has secured a $100 million, about N16 billion, long term loan facility from the United States of America’s (USA) development finance institution, the Overseas Private Investment Corporation (OPIC), and the global investment banking leader, J.P. Morgan to support infrastructural development in Nigeria and other countries in the African continent.

Andrew Alli, President and  Chief Executive Officer, AFC, said $75 million of the facility will be provided by OPIC while the remaining $25 million will be provided by JP Morgan.

According to him, the facility is intended to further deepen AFC’s resources to support infrastructure development on the African continent.

He explained that the AFC has established a world class team of African infrastructure and investment professionals to support the project development, deal structuring and early stage investment that are critical to delivering bankable projects.

He further stated that the AFC will leverage OPIC’s and JP Morgan’s support to further the development of its infrastructure portfolio across Africa.

He said, “We are delighted with OPIC’s and JP Morgan’s show of faith in the AFC business model and support for our commitment to providing an African led, private sector driven contribution to bridging Africa’s infrastructure divide.

“Over the last 18 months we have established financing partnerships with a broad range of Development Finance Institutions (DFI) and private sector partners, with credit facilities in excess of US$850 million.

“With an investment deficit of over US$40 billion per annum over the next ten years a co-ordinated approach based on strong private and public sector partnerships is vital.”

Also speaking, Elizabeth Littlefield, OPIC’s President and Chief Executive Officer, said, “When effective financial leadership catalyses investment to create significant development impact, we in the DFI community take notice. Recognition for AFC’s work has been rapidly growing as they spur private sector investment in African power and infrastructure projects.