The Africa Finance Corporation (AFC) has successfully raised $500 million through a five-year senior unsecured Eurobond, achieving the tightest pricing in the institution’s history for a five-year US dollar benchmark issuance.
The transaction, announced on Thursday, also marked a significant milestone for the pan-African infrastructure financier, with central banks—including an African central bank—participating in an AFC bond issuance for the first time.
Issued under AFC’s $5 billion Global Medium-Term Note Programme, the five-year Reg S-only senior unsecured notes carry a 5.375% coupon, representing the Corporation’s narrowest spread over US Treasuries for a benchmark five-year transaction. AFC said the pricing was a notable improvement over its previous Eurobond issuance completed in 2024.
The Corporation said the bond attracted strong demand from institutional investors across the United Kingdom, Europe, Asia, the United States and the Middle East. The offering was approximately two times oversubscribed, reflecting continued investor confidence in AFC’s investment-grade credit profile.
The notes are rated A by S&P Global Ratings and A3 by Moody’s Ratings, consistent with AFC’s long-term issuer ratings.
Commenting on the successful fundraising, AFC President and Chief Executive Officer, Samaila Zubairu, said the transaction demonstrated investors’ confidence in the Corporation’s strategy and its role in supporting Africa’s economic transformation.
According to him, achieving the Corporation’s lowest-ever pricing on a benchmark US dollar issuance highlights the strength of AFC’s credit profile, consistent financial performance and growing credibility in international capital markets.
According to the Corporation, proceeds from the Eurobond will be used to meet general funding requirements and expand its capacity to finance infrastructure and industrial projects across Africa.
The issuance was jointly managed by Abu Dhabi Commercial Bank, First Abu Dhabi Bank, Goldman Sachs International, J.P. Morgan Securities, Mizuho International, MUFG Securities EMEA, Standard Chartered Bank and Standard Bank of South Africa.
