Prime Highlights
- AFC secures its tightest-ever pricing on a $500 million five-year Eurobond, reflecting strong global investor confidence.
- The order book closes nearly two times oversubscribed, with central banks joining an AFC bond issuance for the first time.
Key Facts
- The Eurobond carries a 5.375% coupon, marking AFC’s narrowest-ever spread over US Treasuries for a five-year benchmark deal.
- The notes hold long-term ratings of A from S&P Global Ratings and A3 from Moody’s Ratings.
Background
Africa Finance Corporation returned to international capital markets, pricing a $500 million five-year Reg S senior unsecured Eurobond at the tightest level in the Corporation’s history for a five-year US dollar benchmark deal.
The bond carried a 5.375% coupon, marking AFC’s narrowest-ever spread over US Treasuries for this type of transaction. That tops AFC’s previous Eurobond issued in 2024 and signals strong investor trust in the Corporation’s investment-grade credit standing and its expanding role in African infrastructure and industrial financing.
Institutional investors across the UK, Europe, Asia, the US and the Middle East drove strong demand, and the order book closed nearly two times oversubscribed.
In a milestone for the Corporation, central banks took part in an AFC bond issuance for the first time, including an African central bank. The move broadens AFC’s investor base and signals rising interest among global reserve managers in investment-grade African assets.
The notes carry long-term ratings of A from S&P Global Ratings and A3 from Moody’s Ratings, matching AFC’s issuer ratings.
Samaila Zubairu, President and CEO of AFC, said the transaction reflects strong global confidence in the Corporation’s strategy and its role in advancing Africa’s economic transformation.
Banji Fehintola, Executive Board Member and Head of Financial Services at AFC, said the deal underscores AFC’s ability to access international capital markets on competitive terms and highlights the strength of its funding strategy.
The Eurobond falls under AFC’s $5 billion Global Medium-Term Note Programme. Proceeds will support the Corporation’s infrastructure and industrial financing efforts across Africa.
