Africa Finance Corporation Breaks Digital Bond Record with $431 Million Issuance
The Africa Finance Corporation (AFC) has successfully raised $431 million through its largest digital bond issuance to date, exceeding expectations. The five-year digital bond carries a coupon of 1.4925% and was issued in Swiss francs, the largest digital issuance ever made on the Swiss franc bond market.
The bond saw significant demand from Swiss investors, accounting for approximately 90% of orders, with international accounts making up the remaining 10%. The order book was dominated by banks and financial institutions at 57%, followed by asset managers at 37% and hedge funds at 6%.
The transaction was structured by Commerzbank and Deutsche Bank, and the bond is listed on the SIX Swiss Exchange. It's based on a distributed ledger infrastructure (DLT), allowing for digital ownership recording and settlement through a regulated digital register.
This marks the AFC's fourth Swiss franc issuance, surpassing its previous record of $150 million set in 2020 with its first green bond. The funds raised will be used to finance general operations and infrastructure projects across Africa.