Africa Finance Corporation issues US$500 million ten-year eurobond
06 November 2019
Africa Finance Corporation (“AFC” or “the Corporation”), the leading infrastructure solutions provider in Africa, announces the successful issuance of a US$500 million Reg S Only Eurobond for general corporate purposes, maturing in October 2029.
The Senior, unsecured Eurobond which carries a coupon of 3.75% was priced to yield 3.895% for a tenor of 10 years. It is the longest tenor bond issued by the Corporation till date. The bond received strong global interest across the Middle East, Asia, the United Kingdom, Switzerland and Europe. Prior to the launch of the bond, AFC held a global investor call followed by investor meetings in London.
The issuance is the fourth Eurobond issued by the Corporation, under its US$ 3,000,000.00 Global Medium-Term Note Programme. The bond proceeds will provide capital for AFC to support its growth and long-term approach to infrastructure investing in Africa.
The bond was rated A3 by Moody’s Investor Services, in line with AFC’s issuer rating. It is listed on the Irish Stock Exchange and was distributed to investors in Asia (28%), United Kingdom (26%), Switzerland (17%), Middle East and Africa (15%) and other Europe (11%).
Samaila Zubairu, President & CEO of AFC, commented on the announcement: “AFC is pleased with the successful placement of its fourth Eurobond, which enjoyed a strong subscription rate across multiple geographies. The level of appetite for this bond is a true testament to the growing confidence that global capital markets are placing on Africa’s investment potential, especially in infrastructure, as well as the capital markets’ confidence that AFC is the right partner to de-risk opportunities for institutional capital on the continent.”
MUFG, J.P. Morgan, Merrill Lynch International, First Abu Dhabi Bank PJSC and Rand Merchant Bank acted as Joint Lead Managers and Bookrunners for the U.S.-dollar-denominated Reg. S issue.
About AFC – www.africafc.org
AFC, an investment grade multilateral finance institution, was established in 2007 with an equity capital base of US$1 billion, to be the catalyst for private sector-led infrastructure investment across Africa. With a current balance sheet of approximately US$5.07 billion, AFC is the second highest investment grade rated multilateral financial institution in Africa with an A3/P2 (Stable outlook) rating from Moody’s Investors Service. AFC successfully raised US$650 million in 2019, US$500 million in 2017 and US$750 million in 2015 through Eurobond issuances; out of its Board-approved US$3 Billion Global Medium-Term Note (MTN) Programme. All Eurobond issues were oversubscribed and attracted investors from Asia, Europe and the USA.
AFC’s investment approach combines specialist industry expertise with a focus on financial and technical advisory, project structuring, project development and risk capital to address Africa’s infrastructure development needs and drive sustainable economic growth. AFC invests in high-quality infrastructure assets that provide essential services in the core infrastructure sectors of power, natural resources, heavy industry, transport, and telecommunications. To date, the Corporation has invested over US$6.6 billion in projects within 30 countries across Africa.