Africa Finance Corporation issues $500 million ten-year bond
Africa Finance Corporation (“AFC” or “the Corporation”), the leading infrastructure solutions provider in Africa, announces the successful issuance of a US$500 million Reg S Only Eurobond for general corporate purposes, maturing in October 2029.
The Senior, unsecured Eurobond which carries a coupon of 3.75% was priced to yield 3.895% for a tenor of 10 years. It is the longest tenor bond issued by the Corporation to date. The bond received strong global interest across the Middle East, Asia, the United Kingdom, Switzerland and Europe. Prior to the launch of the bond, AFC held a global investor call followed by investor meetings in London.
The issuance is the fourth Eurobond issued by the Corporation, under its US$ 3,000,000.00 Global Medium-Term Note Programme. The bond proceeds will provide capital for AFC to support its growth and long-term approach to infrastructure investment in Africa.
The bond was rated A3 by Moody’s Investor Services, in line with AFC’s issuer rating. It is listed on the Irish Stock Exchange and was distributed to investors in Asia (28%), United Kingdom (26%), Switzerland (17%), Middle East and Africa (15%) and other Europe (11%).
Samaila Zubairu, President & CEO of AFC, commented on the announcement: “AFC is pleased with the successful placement of its fourth Eurobond, which enjoyed a strong subscription rate across multiple geographies. The level of appetite for this bond is a true testament to the growing confidence that global capital markets are placing on Africa’s investment potential, especially in infrastructure, as well as the capital markets’ confidence that AFC is the right partner to de-risk opportunities for institutional capital on the continent.”
MUFG, J.P. Morgan, Merrill Lynch International, First Abu Dhabi Bank PJSC and Rand Merchant Bank acted as Joint Lead Managers and Bookrunners for the U.S.-dollar-denominated Reg. S issue.
About Africa Finance Corporation
AFC, an investment grade multilateral finance institution, was established in 2007 with an equity capital base of US$1 billion, to be the catalyst for private sector-led infrastructure investment across Africa. With a current balance sheet of approximately US$4.2 billion, AFC is the second highest investment grade rated multilateral financial institution in Africa with an A3/P2 (Stable outlook) rating from Moody’s Investors Service. AFC successfully raised USD 750 million in 2015 and USD 500 million in 2017; out of its Board-approved USD 3 Billion Global Medium-Term Note (MTN) Programme. Both Eurobond issues were oversubscribed and attracted investors from Asia, Europe and the USA. In 2019, the Corporation also issued a Samurai Bond which raised US$ 233 million and JPY 1 billion.