LAGOS, Nigeria, October 2, 2024/ -- Africa Finance Corporation (AFC) (www.AfricaFC.org), the continent’s leading infrastructure solutions provider, today announced an outstanding return to the global debt capital markets, successfully issuing a US$500 million 144A/Reg S
Eurobond.

The benchmark five-year Note, issued at par with a coupon of 5.55%, had a negative concession with pricing inside the Corporation’s outstanding yield curve, resulting in the tightest T-spread ever achieved by AFC on a 5-year US dollar benchmark and enabling AFC to broadly reset its yield curve in the secondary market. The issuance
generated significant interest across Europe, Asia, United States, and
the Middle East, resulting in a peak book that was over two and a half
times oversubscribed.

“After about three years of absence from the Eurobond market, we are
proud of the overwhelmingly positive reception for this bond issuance,
which underscores the global capital market’s continued confidence in
AFC’s credit story, our holistic investor engagement strategy and
support for our mandate to develop and finance infrastructure projects
that will enable Africa’s sustainable industrialization and
prosperity,” said Samaila Zubairu, President & CEO of AFC. “The
significant oversubscription and success of this bond issue is an
endorsement of our impressive financial performance, business strategy,
conservative financial policies and our impact in leading transformative
change in Africa.”

With an order book exceeding US$1.2 billion, the bond drew high-quality
investors seeking exposure to investment-grade issuers like AFC. The
Corporation’s consistent A3 credit rating, upheld since 2014 and
recently reaffirmed by Moody’s, with a rating outlook change from
Negative to Stable, further boosted the bond’s appeal among
institutional investors. The breakdown of the order book reflected
AFC’s very strong capital market access, with final allocation of
Europe: 57%; North America: 23%; Middle East: 15%; and Asia: 5%.

The Eurobond was issued under AFC’s $5 billion Global Medium-Term Note
(GMTN) programme. The proceeds from the bond, listed on the Euronext
Dublin and the London Stock Exchange, will support AFC’s mission to
drive rapid industrialisation and accelerate development impact across
Africa.

Banji Fehintola, Executive Board Member and Head of Financial Services,
commented: “The success of this bond signals more than just strong
market access for AFC; it represents a gateway for other African issuers
to follow suit. Despite market volatility, our ability to secure this
level of demand affirms the resilience of AFC’s credit profile and
opens new doors for Africa’s infrastructure financing.”

The issuance was coordinated by a consortium of global financial
institutions, including BofA Securities, Citigroup, First Abu Dhabi
Bank, and Goldman Sachs International as Global Coordinators and Joint
Bookrunners, alongside Rand Merchant Bank and SMBC Nikko as Joint
Bookrunners.