AFC Breaks Ground with First African Digital Bond

Africa Finance Corporation (AFC) has made history by becoming the first African institution to issue a digital bond. The corporation raised 350 million Swiss francs through a five-year digital bond, which was listed, traded, and settled on a regulated digital exchange.

The transaction set a record for the Swiss franc market, making it the largest digital bond ever issued in the currency. AFC's president and chief executive, Samaila Zubairu, said the deal 'marks another significant milestone in AFC's funding journey'.

The bond was priced at a 1.4925 percent coupon and issued under AFC's 5 billion US dollars Global Medium-Term Note Programme. The funding falls within the corporation's 500 million US dollars benchmark issued in June.

About 90 percent of investor demand came from Swiss domestic investors, with international accounts accounting for the remaining 10 percent. Banks and financial services companies made up 57 percent of the orderbook, asset managers 37 percent, and hedge funds 6 percent.