AFC’s Inaugural Hybrid Bond Raises $500 Million for African Infrastructure Projects
The Africa Finance Corporation (AFC), a leading provider of infrastructure solutions on the continent, has successfully issued its first hybrid bond, raising $500 million.
Priced at a 7.50% coupon with no fixed maturity, the perpetual bond received robust demand, peaking at $1.1 billion in orders and closing with a 1.5-times oversubscription.
This landmark bond issuance strengthens AFC’s financial position, providing 100% equity credit recognition from Moody’s Investor Services and enabling the corporation to fund transformative projects across Africa.
AFC’s innovative financial approach aims to support the continent’s sustainable development and industrialization efforts, despite tightening global financial conditions.
Samaila Zubairu, AFC President and CEO, described the hybrid bond as “a milestone in mobilizing global capital to advance bold infrastructure initiatives in Africa.” Executive Board Member Banji Fehintola added, “This demonstrates the confidence global investors have in AFC’s ability to deliver transformative development.”
The funds will support high-impact projects, including the Lobito Corridor Rail Project connecting landlocked countries to global markets, the Red Sea Power Project aiding Djibouti’s renewable energy goals, and Arise Integrated Industrial Projects reducing import dependency and creating jobs.
Joint Lead Managers for the issuance included BofA Securities, J.P. Morgan, and Societe Generale, among others.
AFC’s innovative hybrid bond sets a new benchmark for African institutions, reinforcing the continent’s potential for economic transformation through global financial markets.
For more information, visit www.AfricaFC.org.
Distributed by APO Group on behalf of Africa Finance Corporation (AFC).
