AFC Raises CHF 350 Million in Landmark Swiss Digital Bond Deal

AFC said its investment-grade credit ratings supported the transaction, with S&P assigning the Corporation an ‘A’ rating with a positive outlook and Moody’s rating it A3 with a stable outlook.

Africa Finance Corporation (AFC) has raised CHF 350 million through a five-year digital bond, becoming the first African institution to issue a digital bond that is listed, traded and settled on a regulated digital exchange while setting a new record for the largest digital bond issued in the Swiss Franc market.

The infrastructure solutions provider priced the bond at a coupon of 1.4925%, adding another funding channel to its international capital markets programme at a time when geopolitical uncertainty continues to shape investor decisions. AFC said its investment-grade credit ratings supported the transaction, with S&P assigning the Corporation an 'A' rating with a positive outlook and Moody's rating it A3 with a stable outlook.

Swiss Investors Drive Demand for AFC's Digital Bond

Domestic Swiss investors accounted for around 90% of demand for the issuance, while international accounts contributed the remaining 10%, highlighting AFC's established presence in a market where it has previously raised capital through conventional and sustainable financing instruments.

Banks and financial services institutions made up 57% of the orderbook, becoming the largest investor group, followed by asset managers with 37% and hedge funds with 6%. The latest deal is AFC's fourth and largest Swiss Franc issuance, building on transactions that include its CHF 150 million Green Bond issued in 2020.

AFC President and CEO Samaila Zubairu said the transaction represented more than competitive pricing, pointing to continued investor confidence in the Corporation's strategy, credit position and development activities. He said diversifying AFC's sources of capital would remain important for mobilising long-term financing for Africa's industrial and economic development.

Tokenised Structure Brings DLT Into the Funding Programme

The bond was issued under AFC's US$5 billion Global Medium-Term Note Programme and has been structured as a tokenised security using Distributed Ledger Technology, commonly known as DLT. Ownership is recorded on a regulated digital register, while settlement takes place through regulated digital market infrastructure.

The bond has been admitted for trading and listing on the SIX Swiss Exchange and deposited with SIX Digital Exchange, with clearing and settlement handled through the system operated by SIX SIS AG. The structure brings blockchain-based financial infrastructure into a large institutional fundraising transaction while retaining the regulatory framework expected by mainstream capital market investors.

Digital Format Supports Broader Funding Diversification

Banji Fehintola, Executive Board Member and Head of Financial Services at AFC, described the issuance as an important milestone for the Corporation's funding programme, saying the scale of the transaction reflects investor trust built across Swiss and international markets.

Fehintola said the digital structure also demonstrates AFC's interest in adopting new capital market technologies as it expands and strengthens its funding base. The technology itself is only one part of the transaction, with the larger objective centred on creating more diverse sources of financing that can ultimately support infrastructure investment across African economies.

Funds to Support Infrastructure Financing Across Africa

Proceeds from the CHF 350 million issuance will be used for AFC's general funding requirements, strengthening its capacity to finance infrastructure projects linked to industrialisation and economic transformation across the continent.

The transaction follows AFC's US$500 million benchmark issuance completed in June 2026 and adds another example of how the Corporation is combining established international debt markets with newer financing structures. Commerzbank AG served as Technical Lead for the digital bond, while Deutsche Bank AG London Branch, acting through Deutsche Bank AG Zurich Branch, also arranged the transaction.