News

Africa Finance Corporation Closes US$140 million Kimchi Term Loan Facility

LONDON, UK�-�African Media Agency - 20 November 2019 - Africa Finance Corporation ("AFC," the "Corporation"
or the "Borrower"), Shinhan Bank London Branch and South Africa's Nedbank
Limited, London Branch (both the "Bookrunner and Mandated Lead Arrangers" or
the "BMLAs") are pleased to announce the successful closing of AFC's inaugural
US$140,000,000 Kimchi Term Loan Facility ("Facility").

Mr B.H Sung, Chief Rep. Bank of Korea; Mr J.H. Lee, Chief Rep. Financial Supervisory Service in Korea; Mr C.B. Park, General Manager of KEB Hana Bank, London Branch; Mr. Samaila Zubairu President & CEO of Africa Finance Corporation (AFC); the Head of Group & Global Investment Banking, Shinhan Financial group; the Director of Investment Banking, Nonghyup Bank; Mr H.S Kim, Minster of counseller (Economy and Finance), Korea Embassy in London and Mr S.H Seo, General Manager of Shinhan Bank, London Branch

The
Facility is AFC's first Korean-focused loan facility and an important step as
it builds a broad coalition of international investors to diversify its funding
sources and allow institutions from around the globe to participate in Africa's
development. This Facility follows a successful US$233 million and JPY1 billion
dual currency Samurai Term Loan Facility closed in early September 2019 and
US$300 million Loan Facility through the Export-Import Bank of China.

Proceeds
from the Kimchi Term Loan Facility will be used for general corporate purposes
in accordance with AFC's Establishment Agreement and the Charter.

Samaila Zubairu, President & CEO of AFC, commented: "We
are delighted to announce this Kimchi Term Loan Facility, which is
testament to AFC's strong fundamentals and ability to diversify our funding
sources as we build a coalition of investors to support our mandate of providing
solutions to Africa's infrastructure deficit. This also signifies the start of a great partnership
with Shinhan Bank and the continuation of our relationship with Nedbank Limited,
both ardent supporters of AFC and, indeed, Africa's sustainable development. The
Kimchi Facility augments the significant interest we have received to date from
Asia, including a dual currency Samurai Term Loan Facility, a Loan Facility
secured from the Export-Import Bank of China, and being the first African
investment grade financial institution to be accredited by the Korea-based
Green Climate Fund. There is clearly heightened market interest in African
infrastructure, with investors realising the great potential that exists across
the continent."

Banji Fehintola, Senior
Director & Treasurer of AFC, said: "At AFC, we constantly seek to diversify
our sources of funding and Korea is certainly a very key market for us. It is
this type of innovative finance that will enable us to continue mobilising
global capital to execute projects and transform the lives of people in Africa.
We are very proud of the success of this transaction and what we have achieved
in Asia, and we look forward to deepening and broadening our partnerships over
time."

Mr Seung Hyeon Seo, General Manager of Shinhan Bank, London, added: "I
am delighted to announce that AFC's syndication has provided another milestone
for Shinhan Bank as we engage in a dedicated business relationship in the African
continent.� We will continue to build up a�sustainable�business
model within Africa as well as the EMEA region, as we look to lead and support
Korean investors to the African Market."

Kevin Ryder, UK
Country Head for Nedbank, also commented on the Facility: "Nedbank is deeply
committed to Africa and its economic development. We see the ability to connect
international investors to the African market and vice versa as a core function
and a key strength. This inaugural 'Kimchi' loan for AFC is a prime example of
how we leverage our loan syndication and distribution capabilities to enable a
key client such as AFC to further diversify its investor base. We are grateful
to Shinhan Bank for choosing us as their African partner for this transaction."�

The Facility launched into general syndication 16 September
2019 and the loan agreement was finalised 11 November 2019.

The signing ceremony, which took
place in London on Tuesday, 19 November 2019, was attended by the Lenders and
representatives of AFC, [Shinhan Life, Embassy of the Republic of Korea, FSS
London Representative Office, Bank of Korea, Mirae Asset Daewoo].

In addition, KEB Hana Bank also
joined as Mandated Lead Arranger, NongHyup Bank was Lead Arranger, and First
Abu Dhabi Bank PJSC is the Agent.

Notes to Editors

About AFC - www.africafc.org

AFC, an
investment grade multilateral finance institution, was established in 2007 with
an equity capital base of US$1 billion, to be the catalyst for private
sector-led infrastructure investment across Africa. With a current balance
sheet of approximately US$5.6 billion,

AFC is the
second highest investment grade rated multilateral financial institution in
Africa with an A3/P2 (Stable outlook) rating from Moody's Investors Service.
AFC successfully raised US$650 million in 2019, US$500 million in 2017 and
US$750 million in 2015 through Eurobond issuances; out of its Board-approved
US$3 billion Global Medium-Term Note (MTN) Programme. All Eurobond issues were
oversubscribed and attracted investors from Asia, Europe and the USA.

AFC's
investment approach combines specialist industry expertise with a focus on
financial and technical advisory, project structuring, project development and
risk capital to address Africa's infrastructure development needs and drive
sustainable economic growth. AFC invests in high-quality infrastructure assets
that provide essential services in the core infrastructure sectors of power,
natural resources, heavy industry, transport, and telecommunications. To date,
the Corporation has invested over US$6.6 billion in projects within 30
countries across Africa.

About Shinhan
Bank

Shinhan Bank is the
leading bank in Korea with total employees of 17,801, offices around 20
countries. Shinhan Bank, which has been setting a new standard with constant
challenges and innovations in Korea's
banking industry, and Cho Heung Bank, a long-standing industry leader in Korea,
became one on April 1,2006 and integrated Shinhan Bank was launched under the
motto of "Financial Pride Of Korea,
THE BANK, Shinhan". As of end of June 2007,
Shinhan Bank now stands as an undisputed, financially sound industry leader
with 198.6996 trillion won in total assets, 10.76 trillion won in shareholders' equity, 1,038 branches and 15 million
customers.

To offer a comprehensive
range of financial services effectively,�Shinhan segments our customers
into 7 groups(Retail, PB, WM, SMEs,(Large)Corporate, IB segments) and pursue
specialized business models. To satisfy customers' financial needs with the top-class financial expertise, we have built
and are operating an optimized channel network. Even amid the rapidly changing
financial environment, Shinhan Bank maintains its leadership in asset quality
and risk management while trying to develop new growth engines based on strong
organizational culture and increase efficiency/ competitiveness through
innovation activities. The Bank is playing a central role in creating the Group
synergy based on its market leadership in core areas and strengthening global
business in key regions. It is also committed to practicing sustainable
management with its pursuit of CSR activities.

By providing customers with the best value, earning the deep trust from
shareholders, offering a respected workplace for employees and fulfilling the
mission as a corporate citizen that belongs to the society and the nation,
Shinhan Bank aspires to become a No. 1 Bank that takes a lead not just in Korea
but also in Asia and something to be proud of in the minds of customers and to
the nation

About Nedbank

Nedbank is one of the four largest banks in the
Republic of South Africa, tracing its roots back to 1831 with the establishment
of the Cape of Good Hope Savings Bank. Following a succession of branding and
structural changes, Nedbank Group in its present form was established in 2003
with the acquisition of the Board of Executors (BoE).� Nedbank is engaged in a wide spectrum of
banking through its Corporate and Investment Banking franchise, as well as
Retail and Business Banking, Wealth Management and Rest of Africa businesses.
With its head office in Johannesburg, the Group has a far-reaching presence
across Africa, with the Ecobank-Nedbank alliance providing it with a footprint
in 39 countries and creating the largest banking network in Africa.

While Nedbank's primary market is Africa, the Nedbank
Group provides services to international clients through its presence in the
Isle of Man, Guernsey, Jersey, London and Dubai. Nedbank has a vast presence
through its 702 branches and outlets located in South Africa and the rest of
Africa.

As of 31 December 2018, Nedbank Group had 8 million
clients and more than 30 000 staff members. Nedbank is listed on the
Johannesburg Stock Exchange (and the Namibian Stock Exchange) with a market
capitalisation of ZAR136bn as of 31 December 2018.�

Additional
information about Nedbank may found on its website: https://www.nedbank.co.za/content/nedbank/desktop/gt/en/investor-relations.html

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