Africa Finance Corp raises $430.23mln from first digital bond issue

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Africa Finance Corp raised CHF 350 million ($430.23 million) via its first digital bond, the largest Swiss Franc market issue of its kind. The five-year bond, with a 1.4925% coupon, supports African infrastructure projects. Demand was driven 90% by Swiss investors, primarily banks and asset managers, arranged by Commerzbank and Deutsche Bank.

By Staff Writer

Africa Finance Corporation has raised CHF 350 million ($430.23 million) in its first digital bond issuance, making it the largest international issue of its kind in the Swiss Franc market.

The five-year bond, which carries a coupon rate of 1.4925%, was issued under AFC’s $5 billion Global Medium-Term Note Programme to support general funding requirements and finance infrastructure projects across Africa.

The bond attracted significant demand from Swiss domestic investors, representing 90% of orders, with international accounts accounting for the remaining 10%.

Banks and financial services institutions represented 57% of the orderbook, while asset managers accounted for 37%, followed by hedge funds at 6%.

Commerzbank AG (technical lead) and Deutsche Bank AG London Branch (acting through Deutsche Bank AG Zurich Branch) served as arrangers for the offering.

(Writing by Cleofe Maceda; editing by Seban Scaria seban.scaria@lseg.com)

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