• Friday, March 29, 2024
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Africa Finance Corporation issues $500m 10-year Eurobond

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Africa Finance Corporation (AFC), one of Africa’s leading infrastructure solutions providers, has successfully issued a $500 million 10-year Eurobond, its longest tenor dollar-denominated debt instrument since 2015.

The launching of the bond, which is expected to mature in October 2029, came after the corporation held a global investor call as well as a roadshow in London, AFC said in a statement issued Wednesday.

The senior, unsecured Eurobond offering has a coupon rate of 3.75 percent but was priced to yield 3.895 percent for a tenor of 10 years, according to the pan-African multilateral development finance institution and project developer.

“The bond received strong global interest across the Middle East, Asia, the United Kingdom, Switzerland and Europe,” AFC said.

The issuance is the fourth Eurobond issued by the corporation under its $3 billion Global Medium-Term Note Programme, and proceeds from the instruments will provide capital for the corporation to support its growth and long-term approach to infrastructure investing in Africa.

AFC said the bond was rated A3 by Moody’s Investor services in line with its issuer rating. It also added that the bond is listed on the Irish Stock Exchange and was distributed to investors in Asia (28 percent), United Kingdom (26 percent), Switzerland (17 percent), Middle East and Africa (15 percent) and other Europe (11 percent).

The corporation’s debut $750m five-year Eurobond was issued in April 2015. The issuance was subsequently followed with a $500m, and $650 million Eurobonds in 2017 earlier this year, respectively.