AFC lines up regional, international lenders including Citi for Lobito corridor

By Duncan Miriri

NAIROBI, April 30 (Reuters) - The Africa Finance Corporation - lead developer of the U.S.-backed Lobito minerals transport corridor - is in talks with at least ten African and foreign financiers, including Citigroup, to raise $3-5 billion for the project, a senior official said.

The AFC is ramping up preparations for the construction of the key transport project that will combine new and existing railway lines linking copper and cobalt mines to Angola's Atlantic port of Lobito. The project is part of Washington's push to secure access to strategic metals and minerals and curb Chinese influence in Africa.

AFC is in talks with commercial lenders including South Africa's Standard Bank SBKJ.J, Absa ABGJ.J, pan-African lender Ecobank ETI.LG as well as Wall Street bank CitiC.N, said Osaruyi Orobosa, deputy director and head of project development and investment at the Lagos-based lender.

Bilateral institutions include Saudi Export‑Import Bank, Germany's KfW Development Bank, Export‑Import Bank of the United States and the U.S. International Development Finance Corporation as well as the Development Bank of Southern Africa.

"The banks want to come in... everyone wants to come in," he said, adding discussions are focused on familiarising potential financiers ahead of a fundraising push later this year.

Commercial banks are likely to participate as funders and arrangers, some of them could play a coordinating role for export credit agencies involved in the financing, he said. Development lenders could seek to take both equity and debt positions.

AFC has previously disclosed talks with governments and development banks on the Lobito Corridor, but commercial lenders involved in talks have not been identified publicly before.