Africa Finance Corporation (AFC) has successfully priced a $500 million five-year Eurobond, marking a significant milestone in its funding strategy with its lowest-ever spread over U.S. Treasury securities for a bond of similar maturity. The deal, announced on July 2, highlights strong global investor confidence in the institution’s credit profile and Africa-focused infrastructure mandate.
The Eurobond carries a 5.375% coupon and was issued under Regulation S, allowing it to be offered to international investors outside the United States without requiring registration with the U.S. Securities and Exchange Commission. The pricing reflects an improvement compared to AFC’s previous 2024 issuance, which had a higher coupon of 5.55%.
Investor demand for the bond was strong, with the order book reaching roughly twice the size of the offering. The issuance also attracted a broader range of institutional investors, including central banks, with participation from an African central bank for the first time in an AFC bond transaction.
The deal was supported by major international financial institutions, including Goldman Sachs International, Standard Chartered Bank, JPMorgan, Abu Dhabi Commercial Bank, First Abu Dhabi Bank, MUFG Securities EMEA, Mizuho International, and Standard Bank of South Africa. The bond carries an A rating from S&P Global Ratings and an A3 rating from Moody’s, consistent with AFC’s strong credit standing.
Founded in 2007, Africa Finance Corporation has become a key infrastructure financier across the continent, having invested around $19 billion to date. The proceeds from the Eurobond will be used to support general funding needs and expand financing for infrastructure and industrial projects across Africa, reinforcing the organization’s long-term development strategy.
