The African Finance Corporation (AFC) has successfully issued a US$500mn 144A//Reg S Eurobond on a five year bond, issued at par with a coupon of 5.55%.
The note had “had a negative concession with pricing inside the Corporation’s outstanding yield curve, resulting in the tightest T-spread ever achieved by AFC on a 5-year US dollar benchmark and enabling AFC to broadly reset its yield curve in the secondary market.”The proceeds from the bond, listed on the Euronext Dublin and the London Stock Exchange, will support AFC’s mission to drive rapid industrialisation and accelerate development impact across the continent.The issuance was coordinated by a consortium of global financial institutions, including BofA Securities, Citigroup, First Abu Dhabi Bank, and Goldman Sachs International as Global Coordinators and Joint Bookrunners, alongside Rand Merchant Bank and SMBC Nikko as Joint Bookrunners.“The significant oversubscription and success of this bond issue is an endorsement of our impressive financial performance, business strategy, conservative financial policies and our impact in leading transformative change in Africa,” Samaila Zubairu, President & CEO of AFC said.
“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, our holistic investor engagement strategy and support for our mandate to develop and finance infrastructure projects that will enable Africa’s sustainable industrialization and prosperity, Zubairu added.
