Africa Finance Corporation Issues US$500 Mllion 7-year Eurobond
Firm to sponsor AFC Summit
Africa Finance Corporation (AFC) has issued a US$500 million 7-year Eurobond. The senior, unsecured Eurobond which carries a coupon of 3.875 per cent was priced to yield at four per cent and matures in April 2024.
A statement from the AFC yesterday stated that the Eurobond received strong global interest, with an order book of US$2.4 billion. This showed that it was about five times oversubscription from 231 investors across the Middle East, Asia, the United Kingdom, Europe and the United States.
Prior to the launch of the bond, AFC conducted a roadshow in London, Hong Kong, Singapore, the UAE, and the United States.
The bond was AFC’s second benchmark Eurobond issuance under the Corporation’s US$3 billion Global Medium Term Note Programme. The bond was rated A3 by Moody’s Investor Services which is in line with AFC’s issuer rating. The bond will be listed on the Irish Stock Exchange. The Eurobond was distributed to investors in Europe (29%), United States (25%), United Kingdom (24%), Asia (18%) and the Middle East (4%).
AFC is only the second African development finance institution to issue a Eurobond with maturity longer than five years. This, the statement explained was a reflection of the corporation’s strong credit standing and its ability to match-fund medium to long-dated infrastructure investments.
Commenting on the issue, the President/Chief Executive Officer, AFC, Andrew Alli said: “AFC has been committed for the last ten years to investing in projects that drive sustainable growth and development in Africa. In that time, we have invested over US$4 billion in 28 African countries.
“Key to delivering this, are our fund-raising activities around the world, promoting the very real investment opportunities that exist in African infrastructure. The strong interest in this bond reflects investors’ confidence in AFC’s credit, strategy and risk management culture, as well as appetite for exposure to the returns available in African markets.”