 "Exim Bank extends $100 mn loan to Africa Finance Corp for infra development")
Exim Bank of India has extended a line of credit of USD 100 million (Rs 730 crore) on behalf of the Indian government to the Africa Finance Corporation (AFC) to develop infrastructure in the continent and boost economic revival of countries in the region.
AFC is an infrastructure solutions provider in the African continent.
AFC has received a USD 100 million credit line from the Export-Import Bank of India (India Exim Bank) to develop critical infrastructure required for the revival of Africa's economies in the wake of the COVID-19 pandemic, a statement said on Tuesday.
The tenure of the soft loan is 10 years.
The funds will be used to support AFC's continued mission to bridge Africa's infrastructure gap and drive the sustainable economic growth urgently required on the continent, said the joint release by Exim Bank and AFC.
India Exim Bank, the sovereign export credit agency of the country, has actively sought opportunities to co-finance projects in Africa through credit lines to support infrastructure development.
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AFC draws capital from a diverse range of international investors and lenders as part of its strategy to maintain Africa's second highest investment grade credit ratings.
"India Exim Bank continues to foster a network of alliances and institutional linkages with multilateral agencies like Africa Finance Corporation, who have a strong credit profile and are at the forefront of changing the development landscape in Africa," said Harsha Bangari, Deputy Managing Director of India Exim Bank.
Exim Bank provides credit lines to national governments, regional financial institutions, commercial banks and other overseas entities as part of its strategy to develop global partnerships.
"The COVID-19 pandemic has set back Africa's growth trajectory and compounded its development challenges. We at AFC, continue to execute our mandate to address Africa's infrastructure needs, working with leading development partners such as India Exim Bank," AFC's President and CEO Samaila Zubairu said.