Africa Finance Corporation (AFC), the premier infrastructure solutions provider on the continent, has successfully re-entered the global debt capital markets with the issuance of a US$500 million 144A/Reg S Eurobond.
The five-year benchmark Note, issued at par with a coupon rate of 5.55%, was priced below the Corporation’s existing yield curve, achieving the tightest T-spread in AFC's history for a five-year US dollar benchmark. This successful issuance not only reflects AFC's strong positioning but also resets its yield curve in the secondary market. The offering saw remarkable interest from investors across Europe, Asia, the United States, and the Middle East, resulting in an order book that was over two and a half times oversubscribed.
“We are thrilled by the exceptional reception of this bond issuance after a three-year hiatus from the Eurobond market, highlighting the ongoing confidence of global capital markets in AFC’s credit story, our proactive investor engagement strategy, and our commitment to financing infrastructure projects that will drive Africa’s sustainable industrialization and growth,” stated Samaila Zubairu, President & CEO of AFC. “The substantial oversubscription and success of this bond serve as a testament to our strong financial performance, strategic approach, and our role in fostering transformative change across Africa.”
With an order book surpassing US$1.2 billion, the bond attracted high-quality investors eager for exposure to investment-grade issuers like AFC. The Corporation’s stable A3 credit rating, reaffirmed by Moody’s since 2014 and recently upgraded from Negative to Stable, further enhanced the bond’s attractiveness to institutional investors. The final allocation of the order book illustrated AFC’s robust access to capital markets: 57% from Europe, 23% from North America, 15% from the Middle East, and 5% from Asia.
The Eurobond was issued under AFC’s $5 billion Global Medium-Term Note (GMTN) programme. The proceeds from the bond, listed on the Euronext Dublin and the London Stock Exchange, will support AFC’s mission to drive rapid industrialisation and accelerate development impact across Africa.
Banji Fehintola, Executive Board Member and Head of Financial Services, commented: “The success of this bond signals more than just strong market access for AFC; it represents a gateway for other African issuers to follow suit. Despite market volatility, our ability to secure this level of demand affirms the resilience of AFC’s credit profile and opens new doors for Africa’s infrastructure financing.”
The issuance was coordinated by a consortium of global financial institutions, including BofA Securities, Citigroup, First Abu Dhabi Bank, and Goldman Sachs International as Global Coordinators and Joint Bookrunners, alongside Rand Merchant Bank and SMBC Nikko as Joint Bookrunners.
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