AFC Secures Record $430m Digital Bond to Fund African Infrastructure

Africa Finance Corporation (AFC) has successfully raised $430 million through a five-year digital bond issued in Swiss francs. The transaction, which set a new record in the Swiss franc market, was AFC's largest digital bond issued in the currency and the first by an African institution to be listed, traded, and settled on a regulated digital exchange.

The bond carries a 1.4925% coupon and is part of AFC's $500 million benchmark funding programme launched in June 2022. Investor interest was strong despite difficult conditions in global markets, with Swiss investors placing about 90% of the demand and international investors accounting for the remaining 10%. Banks and other financial institutions made up 57% of the order book, while asset managers accounted for another 37%, and hedge funds contributed 6%.

AFC holds an A rating with a positive outlook from S&P Global Ratings and an A3 rating with a stable outlook from Moody's Ratings. According to Samaila Zubairu, president and chief executive officer of AFC, 'This transaction is about far more than achieving competitive pricing. It marks another significant milestone in AFC’s funding journey and underscores the confidence global investors continue to place in our strategy, credit strength, and development impact.'