ABUJA (Naija247news) – The Africa Finance Corporation (AFC) is in discussions with banks to issue Sukuk and Panda bonds as part of its strategy to expand financing for Africa’s $2 trillion infrastructure gap.
Thank you for reading this post, don't forget to subscribe!The Lagos-based multilateral development finance institution aims to diversify funding sources and attract global investors to support large-scale projects across the continent.
The planned Sukuk issuance builds on AFC’s previous success in Islamic finance, following its $230 million Sukuk bond in 2017, the first-ever by an African supranational entity. The new issuance will enable AFC to leverage Shariah-compliant funding to boost infrastructure development.
Additionally, AFC is preparing to issue a Panda bond—a renminbi-denominated bond in China’s capital markets—by the end of 2025. This move is aimed at expanding AFC’s investor base and tapping into China’s deep liquidity pools to secure alternative funding for African infrastructure projects.
With Africa’s infrastructure financing needs estimated at $2 trillion by 2040, AFC’s adoption of diverse capital-raising strategies reinforces its commitment to closing the funding gap.
The new Sukuk and Panda bonds will enhance AFC’s financial capacity to accelerate transformative infrastructure projects, strengthen economic growth, and position Africa as a key player in global financial markets.
