en.Wedoany.com Reported - Infrastructure investment fund Africa Finance Corporation (AFC) has announced that the Lobito Corridor Railway Project, a cross-border transport infrastructure project in Angola, has successfully achieved a $753 million financial close. The deal was reached after key financing agreements were signed late last year, marking a significant step forward for regional integration and economic transformation in Africa.
The funds will be used to support the rehabilitation, upgrade, and long-term operation of the 1,300-kilometer brownfield railway corridor connecting the Port of Lobito in Angola to the border of the Democratic Republic of the Congo (DRC). Lobito Atlantic Railway (LAR) is a joint venture between construction and infrastructure company Mota-Engil and metals and minerals logistics company Trafigura.
As a co-financial advisor on the transaction, AFC, together with financial services firm Eaglestone, led the structuring and fundraising for the borrower and concessionaire LAR. AFC stated that the financing for the regional project includes $553 million from the U.S. International Development Finance Corporation and $200 million from the Southern African Development Bank.
By enhancing connectivity between key markets, supporting regional trade corridors, and strengthening global market access, the Lobito Corridor Railway Project is seen as a major milestone in advancing regional integration and unlocking Africa's industrial potential. Nuno Gil, Founding Partner of Eaglestone, said: "Achieving financial close for the Lobito Corridor Railway Project is the result of years of work and a defining moment for infrastructure financing in sub-Saharan Africa. This transaction demonstrates that complex cross-border multi-lender project financing can be structured and successfully closed on the continent." Samaila Zubairu, President and CEO of AFC, noted: "As one of Africa's most strategically important transport corridors, this project will strengthen regional connectivity, promote trade, and bring new economic growth opportunities to Angola and the wider region."
