Africa Finance Corporation (AFC) has announced the financial close of the US$753mn Lobito Corridor Railway Project in Angola
It marks a major milestone for one of Africa's largest and most strategic cross-border transport infrastructure developments.
The project will fund the rehabilitation, upgrade and long-term operation of a 1,300-kilometre rail corridor linking the Port of Lobito on Angola's Atlantic coast with the border of the Democratic Republic of Congo (DRC).
The railway is expected to improve regional connectivity, facilitate trade and strengthen access to international markets for a variety of mineral deposits out of the DRC.
"The financial close of the Lobito Corridor Railway Project underscores AFC's leadership in delivering complex transformational infrastructure that advances Africa's industrialisation and regional integration,” said AFC’s president and CEO Samaila Zubairu.
“As one of the continent's most strategic transport corridors, the project will strengthen regional connectivity, facilitate trade and unlock new opportunities for economic growth across Angola and the wider region.”
AFC acted as co-financial adviser alongside Eaglestone, helping to structure and mobilise financing for Lobito Atlantic Railway S.A. (LAR), the concessionaire responsible for the project.
LAR is a joint venture between construction firm Mota-Engil and commodities trader Trafigura.
The financing package includes US$553mn from the US International Development Finance Corporation (DFC) and US$200mn from the Development Bank of Southern Africa (DBSA), following financing agreements signed late last year.
Eaglestone founding partner Nuno Gil described the agreement as “the culmination of years of work and a defining moment for infrastructure finance in sub-Saharan Africa.”
He also said the deal demonstrated that “complex, multi-lender, cross-border project financings can be structured and successfully closed on the continent.”
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AFC announces financial close on Lobito Corridor Railway Project
Lobito is a strategic project connecting central and west African markets to the USA. (Image source: AFC)
