Clifford Chance

Clifford Chance advises UAE bank syndicate on Africa Finance Corporation's inaugural AED 937.5 million sustainability‑linked loan facility

Clifford Chance has advised a syndicate of leading UAE-based financial institutions on Africa Finance Corporation’s (AFC) inaugural AED 937.5 million (US$255 million) Sustainability-Linked Term Loan Facility (the “Facility”). This milestone transaction marks a significant step in AFC’s innovative funding strategy and strengthens its financial relationships within the UAE.

The Facility incorporates predefined Sustainability Performance Targets (SPTs), aligning AFC’s future borrowing costs with measurable environmental outcomes. Under the terms of the facility, AFC is eligible for reduced loan pricing upon achieving specific sustainability targets, reinforcing the Corporation’s commitment to embedding ESG considerations into its capital raising.

The financial institutions involved included Abu Dhabi Commercial Bank PJSC, Emirates NBD Capital Limited, First Abu Dhabi Bank PJSC, Mashreqbank PSC, and National Bank of Ras Al Khaimah (P.S.C.) as Initial Mandated Lead Arrangers and Bookrunners. Mashreqbank PSC acted as Global Coordinator, Documentation Coordinator, and Publicity Agent. First Abu Dhabi Bank PJSC served as Sustainability Coordinator, while Emirates NBD Bank (P.J.S.C.) acted as Facility Agent.

The Clifford Chance team advising on the transaction was led by Graham Brewer (Partner), supported by Yassin Salla (Senior Associate) and Nasser Seif (Trainee Solicitor), all based in the Dubai office. The team advised on all legal aspects of the financing, including structuring, drafting, negotiation of documentation, and integration of the sustainability-linked features.

This transaction underscores Clifford Chance’s market-leading expertise in innovative and sustainability-linked financings across the Middle East and Africa.

Consistently ranked Band 1 in legal directories, Clifford Chance was awarded 12 awards at the Bonds, Loans and Sukuk Awards 2024, 6 awards at the IFLR Middle East Awards 2024 and 10 awards at the Islamic Finance News Awards 2023.

Clifford Chance was also named Banking and Finance Law Firm of the Year at The Legal 500 MENA Awards 2024 and, UAE Banking & Finance Law Firm of the Year at the Chambers Middle East Awards 2024.