Africa Finance Corporation (AFC), the continent’s leading infrastructure solutions provider, has made a notable return to the global debt capital markets by successfully issuing a $500 million Eurobond under the 144A/Reg S format.
This benchmark five-year note, issued at par with a coupon rate of 5.55 percent, achieved the tightest T-spread in AFC’s history for a five-year US dollar benchmark. The bond issuance garnered significant attention from investors across Europe, Asia, the United States, and the Middle East, leading to a peak oversubscription of more than two and a half times.
“After about three years of absence from the Eurobond market, we are proud of the overwhelmingly positive reception for this bond issuance, which underscores the global capital market’s continued confidence in AFC’s credit story,” said Samaila Zubairu, President & CEO of AFC. He emphasized that the significant oversubscription reflects the Corporation’s robust financial performance, business strategy, and impact on infrastructure development across Africa.
The order book exceeded $1.2 billion, attracting high-quality investors keen on investment-grade issuers like AFC. The Corporation’s consistent A3 credit rating, reaffirmed by Moody’s with a recent outlook change from Negative to Stable, further enhanced the bond’s appeal. The final allocation of the bond was 57 percent to Europe, 23 percent to North America, 15 percent to the Middle East, and 5 percent to Asia.
The Eurobond was issued under AFC’s $5 billion Global Medium-Term Note (GMTN) programme. The proceeds will bolster AFC’s mission to accelerate industrialization and drive impactful development across Africa. The bond is listed on both the Euronext Dublin and the London Stock Exchange.
Banji Fehintola, executive board member and head of financial services, stated, “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.” He highlighted that despite market volatility, the strong demand for the bond reaffirms AFC’s resilient credit profile and opens up new avenues for infrastructure financing across the continent.
The issuance was managed by a consortium of global financial institutions, including BofA Securities, Citigroup, First Abu Dhabi Bank, and Goldman Sachs International, serving as Global Coordinators and Joint Bookrunners, alongside Rand Merchant Bank and SMBC Nikko as Joint Bookrunners.
