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IDFC Announces Strategic Partnership with AFC


June 16, 2011 - Mumbai, Maharashtra, India

The Africa Finance Corporation (AFC) today formalised a strategic partnership with the Infrastructure Development Finance Company Limited (IDFC), through the signing of a Memorandum of Understanding (MoU) between the AFC and IDFC Capital Limited (IDFC Capital), a wholly owned subsidiary of IDFC. Through the partnership, AFC and IDFC Capital will collaborate to facilitate entry into Africa by Indian companies seeking to expand internationally through investment in infrastructure, logistics, mining, power and telecommunications. Established in 1997, IDFC is India's leading integrated infrastructure finance player providing end to end infrastructure financing and project implementation services.

The ability of IDFC to tap global as well as Indian financial resources makes IDFC acknowledged experts in infrastructure finance. IDFC has a current consolidated net-worth of USD2.5 billion, and balance sheet size of USD 10.7 billion.

The AFC was established in 2007 with a capital base of USD1.0 billion, to be the catalyst for private sector infrastructure investment across Africa. AFC fills a critical void in providing project structuring expertise and risk capital to address Africa’s infrastructure development needs, and is increasingly being seen as the benchmark institution for private sector investment in the core infrastructure sectors of power, oil and gas, heavy industry, transport, and telecommunications.

Andrew Alli, President & Chief Executive Officer of the Africa Finance Corporation said "Given the scale of Africa’s infrastructure requirement and investment deficit, together with the opportunities created by the drive to engage the private sector in financing the investment deficit, a long term partnership with IDFC will establish a formidable platform for engagement of Indian investors into Africa.

Dr. Rajiv Lall Managing Director and CEO of IDFC said “In the coming decade Africa will attract increasing attention from global investors. The continents’ growth its requirement and its vast reserves of resources will pave the way for increased collaboration between Indian companies and the African continent.

Through this partnership AFC will strengthen its commitment to pioneering infrastructure investment solutions on the continent. Indeed, AFC is already actively collaborating with IDFC on a number of advisory initiatives involving African projects and Indian investors, particularly in the mining sector across Africa”.

About AFC - www.africafc.org

AFC is an African-led international financial institution, established in 2007 whose mission is to improve African economies by proactively developing and financing infrastructure, industrial and financial assets. AFC is involved as an investor, developer and financier of various infrastructure projects, and is gaining recognition as the benchmark institution for financing the development of infrastructure projects in Africa. AFC is the lead investor in the award winning Cabeolica project , a US$90 million, 26MW landmark renewable energy wind power project in Cape Verde. AFC is the Technical Adviser to the Central Bank of Nigeria (CBN) on the CBN’s $ 2.0 Billion Power and Aviation Intervention Fund (PAIF). AFC is also the lead investor in Cenpower Generation Company Limited (Cenpower), which is implementing the USD450 million Kpone IPP project – a 340 megawatt combined cycle gas turbine power plant in Tema, Ghana. AFC recently provided financing to a leading Independent Power Producer (IPP) in Nigeria. AFC is the lead investor in the Main One fibre optic cable project, enhancing West Africa’s connection to Europe and the rest of the world through faster and more technologically advanced broadband capacity. AFC has invested in the international oil and gas exploration and production company, Seven Energy Limited, which is playing a pioneering role in developing alternative sources of natural gas for domestic use in the Nigerian power and manufacturing sectors. Underscoring its interest in investing in PPPs/PFIs in its focal sectors across the African continent, AFC also invested in the Bakwena toll road project in South Africa.

About IDFC:

Infrastructure Development Finance Company Limited (IDFC) is India's premier financial services institution focused on infrastructure. It was set up in 1997 by the Government of India as a financier and catalyst for private sector's involvement in infrastructure development in India. IDFC has evolved into a 'one stop shop' for infrastructure finance in India, meeting the complex and ambitious requirements of an expanding client base.

IDFC's strategy involves all parts of the value chain of infrastructure, providing a differentiated value proposition to its clients. IDFC's domain expertise in infrastructure combined with product breadth – project financing, investment banking and asset management enables it to provide creative solutions to its clients. IDFC has strong relationships with the private sector and government enabling it to provide objective advice and facilitate public-private partnerships in infrastructure. IDFC Foundation helps train government officials on public-private partnerships, provides advice on infrastructure policy and governance issues and on sustainable development strategies.

Source: Business Wire India

BusinessWireIndia

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