Africa Finance Corporation Raises US$500 Million in Landmark Eurobond Issuance at Record Tight Pricing

Africa Finance Corporation(AFC) has successfully raised US$500 million through a 5-year Reg S senior unsecured Eurobond, securing the tightest pricing ever achieved by the Corporation on a 5-year US dollar benchmark transaction.

The deal was led by a syndicate of banks including 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 notes were issued at a coupon of 5.375%, representing AFC’s narrowest spread over US Treasuries for a benchmark 5-year issuance and marking a significant improvement compared to its previous Eurobond in 2024. The transaction attracted strong demand from high-quality institutional investors across the United Kingdom, Europe, Asia, the United States, and the Middle East, with the order book closing approximately two times oversubscribed.

In a notable first, central banks — including an African central bank — participated in an AFC bond, broadening the Corporation’s investor base and highlighting its growing appeal among global reserve managers seeking investment-grade assets with strong developmental impact.

The notes are rated A by S&P Global Ratings and A3 by Moody’s Ratings, in line with AFC’s long-term issuer ratings. The issuance was conducted under AFC’s US$5 billion Global Medium-Term Note Programme, with proceeds earmarked for general corporate purposes to support the financing of critical infrastructure and industrial projects across Africa.

Samaila Zubairu, President and CEO of AFC, said: “This transaction reflects the strong confidence global investors continue to place in AFC, our strategy, and our role in advancing Africa’s economic transformation. Achieving our tightest-ever pricing on a US 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.”

Banji Fehintola, Executive Board Member and Head of Financial Services at AFC, added: “The success of this transaction underscores AFC’s ability to consistently access international capital markets on increasingly competitive terms. The participation of an African central bank for the first time further diversifies our funding base and advances our strategy of mobilizing African institutional capital to finance the continent’s development.”