LAGOS, Aug 12 – Africa Finance Corporation (AFC) has raised CHF350 million (about $430 million) through a five-year digital bond, marking the first time an African institution has issued a digital bond that is listed, traded and settled on a regulated digital exchange.
According to the Lagos-based lender, the transaction also represents the largest digital bond ever issued in the Swiss franc market, strengthening AFC’s position in international capital markets as the infrastructure financier seeks to diversify its funding sources.
The bond carries a coupon of 1.4925% and forms part of AFC’s broader $500 million benchmark funding programme issued in June 2026. The transaction was completed against a backdrop of geopolitical uncertainty and benefited from continued investor demand for AFC’s investment-grade credit.
AFC is rated A with a positive outlook by S&P Global Ratings and A3 with a stable outlook by Moody’s Ratings.
Swiss investors accounted for approximately 90% of demand, while international investors represented the remaining 10%. Banks and financial institutions made up 57% of the order book, followed by asset managers with 37% and hedge funds with 6%.
The transaction marks AFC’s fourth and largest Swiss franc-denominated issuance. It follows the corporation’s CHF150 million Green Bond issued in 2020, which was its first green bond transaction.
“This transaction is about far more than achieving competitive pricing. It marks another significant milestone in AFC’s funding journey and underscores the confidence global investors continue to place in our strategy, credit strength, and development impact,” said Samaila Zubairu, President and Chief Executive Officer of AFC.
He added that diversifying and innovating the corporation’s funding strategy would remain important to mobilising long-term capital for Africa’s industrialisation and economic transformation.
Banji Fehintola, Executive Board Member and Head of Financial Services at AFC, described the issuance as a milestone for the corporation’s funding programme.
“Pricing the largest digital bond ever issued in the Swiss Franc market reflects not only the strength of AFC’s credit but the depth of trust that Swiss and international investors have placed in our strategy over time,” Fehintola said.
He added that the digital structure demonstrates AFC’s intention to remain at the forefront of developments in international capital markets while broadening its funding base.
The bond was issued under AFC’s $5 billion Global Medium-Term Note Programme and is structured as a tokenised security using distributed ledger technology. Ownership is recorded on a regulated digital register, while settlement takes place through regulated digital market infrastructure.
The notes are listed and admitted for trading on the SIX Swiss Exchange and deposited with SIX Digital Exchange, with clearing and settlement handled through SIX SIS AG.
The structure gives AFC access to an alternative capital-markets infrastructure while demonstrating how distributed ledger technology can be incorporated into institutional debt issuance within regulated financial markets.
Proceeds from the transaction will be used for AFC’s general funding requirements and to strengthen its ability to finance infrastructure and industrial projects across Africa.
The transaction was arranged by Commerzbank AG as technical lead, alongside Deutsche Bank AG London Branch acting through its Zurich branch.
For AFC, the issuance adds to a series of capital-markets transactions aimed at expanding its funding capacity and reducing reliance on a limited range of financing channels. The successful placement also signals continued demand from institutional investors for African development finance institutions with established investment-grade credit profiles.
