Pan-African Infrastructure solutions provider AFC issues Sh51.5bn 10-year EurobondNovember 7, 2019
NAIROBI, Kenya, Nov 7 – Africa Finance Corporation, AFC has announced the successful issuance of a US$500 million (Sh51.5bn) Reg S Only Eurobond for general corporate purposes, maturing in October 2029.
The Senior, unsecured Eurobond which carries a coupon of 3.75 percent was priced to yield 3.895 percent for a tenor of 10 years. It is the longest tenor bond issued by the Corporation till date.
According to AFC, the bond received strong global interest across the Middle East, Asia, the United Kingdom, Switzerland and Europe.
Prior to the launch of the bond, AFC held a global investor call followed by investor meetings in London.
The issuance is the fourth Eurobond issued by the Corporation, under its US$ 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 percent), United Kingdom (26 percent), Switzerland (17 percent), Middle East and Africa (15 percent) and Europe (11 percent).
“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,” Samaila Zubairu, President & CEO of AFC said.
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.