South African bank Absa is to start providing finance for infrastructure projects in Sub-Saharan Africa after receiving a funding injection from the International Finance Corporation (IFC).
IFC, a member of the World Bank group, is to invest $150 million in the Absa’s investment banking division Absa Capital to fund infrastructure projects that are facing a financing shortfall as a result of the global financial crisis.
The financing will comprise a $30 million loan, in addition to a $120 million standby credit facility. Absa’s CEO Maria Ramos said the bank will target infrastructure projects in the telecommunications, oil, gas and energy sectors with the funds.
IFC is currently raising funds for its $10 billion Infrastructure Crisis Facility, which will provide debt and equity finance, in addition to advisory services, to infrastructure projects facing temporary liquidity problems.