Africa Finance Corporation (AFC), a leading pan-African multilateral development finance institution and project developer, has issued its debut senior unsecured Swiss Franc (CHF) denominated bond, raising CHF 100 million with a tenor of 3 years and 150 days. The fund is meant to fund vital infrastructure projects across the African.
The bond which pays an annual coupon of 0.85% has a settlement date of 27 July 2016 and maturity date of 27 December 2019, a statement, signed by Lucy Savage, vice president, communications of AFC has said.
UBS Investment Bank and Deutsche Bank AG London Branch, acting through Deutsche Bank AG Zurich Branch were Joint Lead Managers on the transaction while J.P. Morgan Securities Plc and MUFG Securities EMEA plc were Hedging Banks.
The bond was issued following a non-deal road show in Geneva and Zurich held in June 2016. The bond issuance enables AFC to further diversify its funding sources and will provide additional long-term liquidity to support the Corporation’s investment activities. The proceeds of this bond issue will be used to fund vital infrastructure projects across the African continent.
Andrew Alli, President/CEO of AFC, explained that through the experience of AFC both as a financier and project developer, it has over the years demonstrated ability to deliver essential infrastructure projects in Africa that will help grow African economies.
“We are very proud to issue our debut CHF bond as this enables us to tap a new and very important investor base as we diversify our funding sources. AFC continues to promote the real opportunities in African infrastructure around the world,” Alli said.
He maintained that AFC has continued to provide opportunities to invest in African infrastructure to investors around the world even at a time of heightened international volatility noting that the successful issuance of the bond demonstrates continued investor confidence in AFC and its ability to deliver for investors and for African economies.
“We are very pleased to help AFC establish this debut CHF bond issue. We view this transaction as a further step in AFC’s strategy, to diversify its funding base across multiple currencies and investors, from time to time,” stressed Ade Adebajo, executive director at UBS in London.
Henrik Johnsson, MD and Head of EMEA Debt Syndicate at Deutsche Bank, added: “we believe that AFC’s bold and successful entry into the CHF market will pave the way for other new market entrants as investors continue to diversify their holdings”.
To date the corporation has invested US$3.2 billion in projects across 25 African countries and in a wide range of sectors including power, telecommunications, transport and logistics, natural resources, and heavy industries.
