AFC raises $500m Eurobond at record low cost as global investor demand surges

The Africa Finance Corporation has raised $500 million through a five year Eurobond, securing the lowest borrowing cost in the institution’s history for a benchmark United States dollar bond as strong demand from global investors underscored confidence in its financial strength and Africa’s infrastructure investment story.

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The senior unsecured Reg S only Eurobond carries a 5.375 percent coupon, giving AFC its tightest spread over United States Treasury securities for a benchmark five year issue. The pricing also improved on the corporation’s previous Eurobond issued in 2024, reflecting growing investor confidence in its credit profile and funding strategy.

Demand for the bond was strong, with orders reaching about twice the amount on offer. The issue attracted institutional investors from the United Kingdom, Europe, Asia, the United States, the Middle East and Africa. In a first for the corporation, an African central bank also participated in an AFC bond offering, broadening its investor base.

The notes are rated A by S&P Global Ratings and A3 by Moody’s Ratings, in line with AFC’s long term investment grade credit ratings.
Samaila Zubairu, AFC president and chief executive officer, said the successful fundraising reflected sustained confidence in the institution and its mission to support Africa’s economic transformation.

“This transaction reflects the strong confidence global investors continue to place in AFC, our strategy, and our role in advancing Africa’s economic transformation.

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Achieving our tightest ever pricing on a United States dollar benchmark issuance demonstrates the strength of our credit profile, the consistency of our financial performance, and the trust we have built with investors over time.”

He added that access to efficient and diversified funding would remain essential as the corporation expands investment in infrastructure and industrial projects across the continent.

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Banji Fehintola, executive board member and head of financial services at AFC, said the transaction highlighted the corporation’s ability to secure funding on competitive terms despite uncertainty in global financial markets.

“The success of this transaction underscores AFC’s ability to consistently access international capital markets on increasingly competitive terms, even amid a dynamic global environment. The participation of an African central bank for the first time further diversifies our funding base and advances AFC’s strategy of mobilising African institutional capital to finance the continent’s development.”

He said the strong participation from investors across different regions also reflected confidence in AFC’s disciplined financial management and its record of financing major infrastructure projects across Africa.

The Eurobond was issued under AFC’s 5 billion dollar Global Medium Term Note Programme, with proceeds to be used for the corporation’s general funding needs and to increase its capacity to finance infrastructure and industrial development across the continent.

The transaction was jointly managed by Abu Dhabi Commercial Bank PJSC, First Abu Dhabi Bank PJSC, Goldman Sachs International, J.P. Morgan Securities plc, Mizuho International plc, MUFG Securities EMEA plc, Standard Chartered Bank, and The Standard Bank of South Africa Limited.

The successful bond sale strengthens AFC’s position as one of Africa’s leading investment grade issuers and signals continued global appetite for institutions financing the continent’s long term infrastructure and industrial growth.