Africa Finance Corporation (AFC) has mobilised $300 million in capital from lenders in India.

The funds were secured from seven Indian banks, including State Bank of India, Canara Bank, Bank of India, Indian Bank, UCO Bank, SBI (Mauritius) and Indian Overseas Bank.

Oversubscribed by 50%, the transaction underscores that there is an appetite for Africa risk in markets like India, according to Said Adren, CEO, Bank of Africa, which acted as the sole mandated lead arranger and bookrunner for the syndicated loan.

AFC, which has recently returned to the global debt capital markets with the issuance of a $500 million bond, will use the new capital to finance projects across Africa.

Moody’s has also recently reaffirmed its A3 credit rating on AFC, with an outlook change from negative to stable.

(Writing by Cleofe Maceda; editing by Seban Scaria) seban.scaria@lseg.com