Leading infrastructure solutions provider, Africa Finance Corporation (AFC), on Wednesday, said it continued its US$3bn Global Medium-Term Note Programme, with the successful issuance US$500m Eurobond.
The senior, unsecured Eurobond, the fourth under the programme, is for general corporate purposes and matures in October 2029 and carries a coupon of 3.75%, the longest tenor bond issued by the corporation to date.
The 10-year tenured bond, which received strong global interest across the Middle East, Asia, the UK, Switzerland, and Europe, according to a statement by the corporation, with a 3.895% yield, followed a global investor call, and investor meetings in London,
Proceeds of the bond rated A3 by Moody’s Investor Services, in line with AFC’s issuer rating, will provide capital for AFC to support its growth and long-term approach to infrastructure investment in Africa. 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%).
The statement quoted Samaila Zubairu, President and Chief Executive of the corporation, expressed AFC’s pleasure with the successful placement, which he noted,
“enjoyed a strong subscription rate across multiple geographies.”
More importantly for him, “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.