LAGOS, July 2 – Africa Finance Corporation (AFC) has raised US$500 million through a five-year senior unsecured Reg S-only Eurobond, securing the lowest pricing ever achieved by the institution on a benchmark five-year U.S. dollar issuance.
The transaction represents another milestone for the pan-African infrastructure financier, reflecting strong investor confidence in its credit profile and expanding its appeal among global institutional investors, including central banks. Notably, the issuance marked the first time an African central bank participated in an AFC bond.
The notes were issued with a 5.375% coupon, representing AFC’s narrowest spread over U.S. Treasuries for a benchmark five-year offering. The pricing also improved significantly on the Corporation’s previous Eurobond transaction completed in 2024, highlighting continued confidence in AFC’s financial strength and disciplined funding strategy.
Investor demand remained robust, with the order book reaching approximately two times oversubscribed. The issuance attracted institutional investors from the United Kingdom, Europe, Asia, the United States, the Middle East, and Africa, demonstrating broad international appetite for AFC’s investment-grade debt.
The notes carry long-term investment-grade ratings of A from S&P Global Ratings and A3 from Moody’s Ratings, consistent with AFC’s issuer credit ratings.
Commenting on the successful fundraising, Samaila Zubairu, President and Chief Executive Officer of AFC, said: “This transaction reflects the strong confidence global investors continue to place in AFC, our strategy, and our role in advancing Africa’s economic transformation. Achieving our tightest-ever pricing on a U.S. dollar benchmark issuance demonstrates the strength of our credit profile, the consistency of our financial performance, and the trust we have built with investors over time. As we continue to scale our impact across the continent, access to efficient and diversified sources of capital remains critical to delivering the infrastructure and industrial assets that drive long-term growth and competitiveness.”
Banji Fehintola, Executive Board Member and Head of Financial Services at AFC, described the transaction as another demonstration of the Corporation’s ability to access international capital markets under favourable conditions.
According to Fehintola, “The success of this transaction underscores AFC’s ability to consistently access international capital markets on increasingly competitive terms, even amid a dynamic global environment. The participation of an African central bank for the first time further diversifies our funding base and advances AFC’s strategy of mobilising African institutional capital to finance the continent’s development. The exceptional quality and geographic diversity of investor participation, together with record-tight pricing, reflect strong market confidence in AFC’s disciplined funding strategy, prudent balance sheet management and proven track record of delivering transformative infrastructure across Africa.”
The Eurobond was issued under AFC’s US$5 billion Global Medium-Term Note Programme, with proceeds earmarked to support the Corporation’s general funding requirements and expand its capacity to finance critical infrastructure and industrial projects across Africa.
The transaction was jointly managed by Abu Dhabi Commercial Bank PJSC, First Abu Dhabi Bank PJSC, Goldman Sachs International, J.P. Morgan Securities plc, Mizuho International plc, MUFG Securities EMEA plc, Standard Chartered Bank, and The Standard Bank of South Africa Limited.
The successful issuance reinforces AFC’s position as one of Africa’s leading investment-grade supranational issuers and highlights continued global investor appetite for institutions financing the continent’s infrastructure, industrialisation and long-term economic development.
