Africa Finance Corporation raised CHF350 million ($430 million) through a five-year digital bond, becoming the first African issuer and the largest international issuer of such an instrument in the Swiss market.
The bond, priced at a coupon of 1.4925%, was issued under AFC’s $5 billion global medium-term note program. It is structured as a tokenized security using distributed ledger technology, with ownership recorded on a regulated digital register. The notes are listed and traded on the SIX Swiss Exchange and settled through SIX Digital Exchange.
Approximately 90% of demand came from Swiss investors and 10% from international accounts. Banks and financial institutions took 57% of the book, asset managers 37% and hedge funds 6%. The deal ranks as AFC’s fourth and largest Swiss franc issuance, following a CHF150 million green bond in 2020.
Proceeds will support general funding needs and infrastructure projects across Africa. The transaction was arranged by Commerzbank AG as technical lead and Deutsche Bank AG.
AFC holds an A rating with a positive outlook from S&P Global Ratings and an A3 rating with a stable outlook from Moody’s Investors Service.
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