AFC Raises $500 Million Eurobond at Record-Low Borrowing Cost

AFC President and Chief Executive Officer Samaila Zubairu said the successful fundraising demonstrates continued global confidence in the corporation's strategy and financial performance.

The Africa Finance Corporation (AFC) has raised US$500 million through a five-year senior unsecured Eurobond, securing the lowest borrowing cost in its history for a benchmark five-year US dollar bond.

The bond carries a 5.375 per cent coupon, marking AFC's tightest-ever spread over US Treasury securities for a transaction of this kind. The corporation said the deal reflects growing investor confidence in its financial strength and its role in financing Africa's infrastructure and industrial development. The issuance attracted strong interest from institutional investors across the United Kingdom, Europe, Asia, the United States and the Middle East, with demand reaching approximately twice the amount offered.

African central bank joins investors for the first time

A key milestone in the transaction was the participation of central banks, including an African central bank, in an AFC bond issuance for the first time. The corporation said this broadens its investor base and highlights increasing recognition among global reserve managers of AFC as a high-quality investment-grade institution with a strong development focus. The Eurobond is rated A by S&P Global Ratings and A3 by Moody's Ratings, matching AFC's long-term credit ratings.

AFC President and Chief Executive Officer Samaila Zubairu said the successful fundraising demonstrates continued global confidence in the corporation's strategy and financial performance. He noted that access to diversified and competitively priced capital is essential for delivering the infrastructure and industrial projects needed to accelerate Africa's economic transformation.

Funds to support infrastructure and industrial projects

Executive Board Member and Head of Financial Services Banji Fehintola said the transaction reflects AFC's ability to access international capital markets on increasingly favourable terms despite global economic uncertainty. He added that the participation of an African central bank supports the corporation's goal of mobilising more African institutional capital to finance development across the continent.

The Eurobond was issued under AFC's US$5 billion Global Medium-Term Note Programme, with proceeds earmarked for the corporation's general funding needs and to expand financing for critical infrastructure and industrial projects throughout Africa. The transaction was arranged by Abu Dhabi Commercial Bank, First Abu Dhabi Bank, Goldman Sachs International, J.P. Morgan Securities, Mizuho International, MUFG Securities EMEA, Standard Chartered Bank, and The Standard Bank of South Africa as joint lead managers.