Africa Finance Corporation (AFC), an organisation with the focus on financing infrastructure, industry and financial assets in Africa, has announced its participation in a loan syndication to raise $750 million to develop Phase 1 of the landmark Ghana Jubilee Oil Field.
AFC's $50 million exposure in the syndication comes barely three years after the company commences its operation.
It is AFC's, first engagement in the oil and gas exploration field.
Kosmos Energy, operating in the consortium with leading oil investors, will use the loan facility to finance its share of the capital expenditure requirement for the development of the project.
The American oil exploring firm is backed by two of the world's largest private equity firms - Warburg Pincus and the Blackstone Group with $148 billion of assets under management.
The oil field which is currently West Africa's largest offshore deepwater find in over a decade, with proven reserves in excess of 300 million barrels of recoverable oil has Anadarko Petroleum Corporation, USA; Tullow Oil plc, UK; and the flagship Ghana National Petroleum Corporation as other development partners.
AFC's involvement in financing the project was in partnership with Standard Chartered Bank London as structuring bank/Global
co-ordinator, International Finance Corporation, BNP Paribas, Société Generale and Calyon.
The rest are Barclays, ABSA of South Africa, and Cordiant Emerging Loan Fund, all leading international financiers.
In a statement at the signing ceremony, Andrew Alli, CEO of AFC, pointed out that it was much delight to AFC to be part of the high profile transaction.
He said: "Even though AFC has just set off on its mission, it has committed millions of dollars to transport, trade, energy and infrastructure projects in Sierra Leone, The Gambia and Nigeria.
"Ghana's addition is a landmark proof that initiatives by Africans are beginning to gain results that were desired many decades ago."
Executive Vice President and Chief Finance Officer of Kosmos Energy, W. Greg Dunlevy viewed AFC's participation in the transaction as strategic with regard to Kosmos Energy's position as a leading exploration and production company in Africa.
Dunlevy expressed the believe that AFC as an African financial institution is best positioned to play a significant role in the future development of exploration and production projects across Africa.
Mr Ade Adeola, Managing Director in charge of Project and Export Finance of Standard Chartered Bank, the lead arrangers of the transaction, also expressed his satisfaction with working with an African financial institution on an African transaction of such magnitude.
AFC is an African-led financial institution with the mission to improve African economies by proactively creating, developing and financing infrastructure, industrial and financial assets.
It is jointly owned by African governments and private Africans. AFC will be solely private when it gets listed on the international capital market.