The Africa Finance Corporation (AFC) has raised CHF350 million through a five-year digital bond, becoming the first African institution to issue a digital bond listed, traded and settled on a regulated digital exchange.
The transaction also marks the largest digital bond ever issued in the Swiss franc market, giving the pan-African infrastructure financier another milestone in its efforts to diversify its funding sources and adopt new capital-market technologies.
The bond carries a coupon of 1.4925% and was issued under AFC’s US$5 billion Global Medium-Term Note Programme. The transaction forms part of the Corporation’s US$500 million benchmark funding programme issued in June 2026.
AFC said the transaction was completed against a backdrop of continuing geopolitical uncertainty but benefited from constructive investor sentiment and the Corporation’s investment-grade credit ratings.
Swiss Investors Dominate
Swiss investors accounted for approximately 90% of demand for the bond, while international investors accounted for the remaining 10%.
Banks and financial services institutions were the largest investor category, accounting for 57% of the order book. Asset managers represented 37%, while hedge funds accounted for the remaining 6%.
AFC said the composition of the order book demonstrated continued investor confidence in its credit profile and strengthened its position in the Swiss capital market.
The transaction is AFC’s fourth Swiss franc issuance and its largest to date. Its previous Swiss franc transaction was a CHF150 million Green Bond issued in 2020, which was also the Corporation’s inaugural green bond.
The CHF350 million proceeds will be used for AFC’s general funding requirements, strengthening its ability to finance infrastructure projects across Africa.
Digital bond, not Conventional Bond
AFC said the bond is a tokenised security using Distributed Ledger Technology (DLT). Ownership of the security is recorded on a regulated digital register, while settlement takes place through regulated digital market infrastructure.
The bond has been admitted for listing and trading on the SIX Swiss Exchange and deposited with SIX Digital Exchange. Clearing and settlement are handled through SIX SIS AG.
In practical terms, the transaction places the ownership and settlement of a conventional debt security within regulated digital-market infrastructure rather than relying entirely on traditional securities-processing systems.
The structure therefore represents a step towards the wider institutional adoption of tokenised securities, while retaining the regulatory framework and market infrastructure associated with established capital markets.
“This transaction is about far more than achieving competitive pricing,” AFC President and CEO Samaila Zubairu said.
He said the transaction represented another milestone in AFC’s funding journey and demonstrated investor confidence in the Corporation’s strategy, credit strength and development impact.
Zubairu added that AFC would continue to diversify and innovate its funding approach as it seeks to mobilise long-term financing at scale for Africa’s industrialisation and economic transformation.
Banji Fehintola, AFC Executive Board Member and Head of Financial Services, described the transaction as a milestone for the Corporation’s funding programme.
He said the size of the issuance in the Swiss franc digital bond market reflected the strength of AFC’s credit profile and investor confidence, while the digital format demonstrated the Corporation’s commitment to innovation in international capital markets.
For AFC, the Swiss digital bond provides both funding and a demonstration of how regulated digital securities can be incorporated into the financing activities of a major African development institution.
Commerzbank AG served as technical lead for the transaction, while Deutsche Bank AG London Branch, acting through its Zurich Branch, was also an arranger.
