AFC Concludes Debut Eurobond Issue

The Africa Finance Corporation (AFC), an African Supranational financial institution has priced its inaugural $750 million 4.375 per cent 5-year international bond. This represents the first issue under AFC’s $3,000,000,000 Global Medium Term Note Programme.

The issue’s settlement date was 29 April 2015 with a maturity date of 29 April 2020, according to a statement from the corporation. The proceeds of the issuance would be used for general corporate and financing purposes and to repay all amounts outstanding under an existing bridge facility.

The Eurobonds were placed following a seven-day roadshow across three continents and involving meetings with over 100 institutional investors. The final order book was more than six times oversubscribed at over US$4.7 billion from a total of 315 investors, enabling a welldiversified distribution among international institutional investors across Asia, Europe and the US, it stated. The bonds will be listed on the Irish Stock Exchange. AFC is a multilateral development financial institution dedicated to infrastructure financing in Africa, primarily through debt and equity investments, project development and financial advisory services. AFC commenced operations on 1 November 2007 and is focused on bridging Africa’s large infrastructure deficit by financing projects that have high developmental impact on the economies of African countries. Its primary goal is to be the leading African institution for infrastructure financing and facilitation of international trade in Africa.