Quick Read: Africa Finance Corporation (AFC) has secured a $400 million Shariah-compliant Murabaha facility, marking its return to the Islamic finance market after eight years. The facility saw overwhelming investor demand, leading to a 47% oversubscription. Major Islamic financial institutions participated, reinforcing AFC’s credibility in global markets. This financing strengthens AFC’s role in driving sustainable infrastructure development across Africa.
AFC Returns to the Islamic Finance Market
Africa Finance Corporation (AFC) has secured a $400 million Shariah-compliant Commodity Murabaha facility. This marks its return to the Islamic finance market after eight years.
Speaking in a Bloomberg TV interview, AFC’s Chief Executive Officer, Samaila Zubairu, emphasized the significance of the deal. He highlighted its role in strengthening infrastructure development across Africa.
Strong Investor Demand Drives Increased Facility Size
Originally launched at $300 million, the facility was increased to $400 million due to strong investor demand. The transaction saw a 47% oversubscription and attracted eleven leading Islamic financial institutions. New partnerships were also formed with Abu Dhabi Islamic Bank PJSC, Al Rajhi Bank, and Emirates Islamic Bank.
“This transaction reinforces AFC’s position as a bridge between global capital and Africa’s critical infrastructure needs,” said Zubairu. “The strong demand reflects investor confidence in our strategy and Africa’s growing role in Islamic finance. By expanding our funding sources, we continue to create innovative financial solutions that drive impactful and sustainable development.”
Key Institutions Involved in the Transaction
The facility was arranged by Emirates NBD Capital Limited, First Abu Dhabi Bank PJSC, and SMBC Bank International Plc. Their participation strengthens AFC’s relationships with top global financial institutions.
AFC’s Expanding Role in Islamic Finance
This financing adds to AFC’s track record in Islamic finance. In 2017, AFC issued a $230 million Sukuk, making history as the first African supranational entity to do so. The corporation continues to develop innovative financial instruments that attract global investors to African infrastructure projects.
In January 2025, AFC raised $500 million through its first perpetual hybrid bond. This further bolstered its financial standing. Additionally, AFC received top credit ratings from S&P Global (China) Ratings and China Chengxin International Credit Rating Co. Ltd (CCXI). These ratings enhance its credibility in global capital markets and pave the way for a potential panda bond issue.
Ensuring Compliance with Islamic Finance Standards
The Murabaha facility complies with the standards set by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). This guarantees adherence to global Islamic finance principles.
Islamic finance, particularly Murabaha structures, is widely regarded as ethical and sustainable. It emphasizes asset-backed financing, risk-sharing, and prohibits speculative practices. These principles align with AFC’s commitment to responsible investment, long-term infrastructure development, and economic stability in Africa.
AFC’s Vision for the Future
“Islamic finance is becoming a key part of our funding strategy. It allows us to tap into a broader pool of investors who share our vision for sustainable and responsible investing,” said Banji Fehintola, Executive Board Member and Head of Financial Services at AFC. “The success of this Murabaha facility highlights the strong appetite for African infrastructure investments. It also underscores AFC’s ability to structure deals that meet global investor expectations.”
With this latest financial achievement, AFC continues to cement its status as Africa’s leading infrastructure finance institution. By leveraging diverse funding sources, it drives sustainable economic growth across the continent.
