AFC Sets Record with $430 Million Swiss Franc Digital Bond
Africa Finance Corporation (AFC) has issued its largest Swiss franc digital bond to date, raising $430 million through a five-year transaction. This milestone marks a significant step for Africa's capital markets and demonstrates investor confidence in AFC's financial strength and long-term development strategy.
The bond carries a 1.4925% coupon and was issued under AFC's $5 billion Global Medium-Term Note Programme, arranged by Commerzbank and Deutsche Bank. The structured digital security uses Distributed Ledger Technology to record ownership on a regulated digital register, with settlement taking place through SIX Digital Exchange.
The transaction has been met with strong demand, with around 90% of the $430 million raised coming from Swiss domestic investors and the remaining 10% from international accounts. Banks and financial institutions represented 57% of the order book, followed by asset managers at 37% and hedge funds at 6%.
AFC currently holds investment-grade ratings of A with a positive outlook from S&P and A3 with a stable outlook from Moody's. The corporation plans to use the proceeds to support its general funding needs and expand its ability to finance infrastructure and other transformational projects across Africa.