Johannesburg, 25 February 2009 - The French Development Agency (AFD) and Airports Company South Africa Ltd (ACSA) today signed a long-term €85 million loan (approximately R1 billion). The loan is repayable over fifteen years with a three year grace period.
The funds will be utilised to finance the extension and upgrading of ACSA’s flagship airport O.R. Tambo International, in particular the Central Terminal Building. Christophe Richard, the Regional Director of AFD based in Johannesburg said: “This financial support shows how international development institutions can accompany, even in critical global financial times, development processes that structure the economy.”As part of ACSA’s strategy to diversify its sources of funding, it has approached a number of financial institutions, particularly those that focus on long-term infrastructure development. AFD is the first international development finance institution to support ACSA in funding its capital investment programme.Priscillah Mabelane, ACSA’s Executive Director: Finance said: “We are pleased that AFD has partnered with us in providing long-term funding with an appropriate structure at the time that the credit market is constrained.” The agreement emphasizes the quality of the partnership between France and South Africa in particular for the support of the organisation of the 2010 Fifa World Cup and the long-term development of Africa.
About AFD The French Development Agency (AFD) is a French government institution set up to provide development financing especially for urban, rural and infrastructural development, as well as industry, financial systems and education. AFD has been operating in South Africa since 1994. One of the main axes of AFD’s mandate is to support infrastructures.
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