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Africa Finance Corporation (AFC), the continent’s leading infrastructure solutions provider, announced on Thursday that it has raised $500 million through a new Eurobond issuance. 

The 5-year Reg S only senior unsecured bond achieved the tightest pricing ever secured by AFC for a 5-year US dollar benchmark transaction. AFC said this underscores strong investor confidence in the institution’s credit profile.

The notes were issued at a coupon of 5.375%, representing AFC’s narrowest spread over U.S. Treasuries for a benchmark 5-year issuance. The transaction also marked the first time a central bank, including one from Africa, had participated in an AFC bond. AFC said this highlights its growing appeal among global reserve managers seeking investment-grade assets with developmental impact.

The issuance attracted strong demand from institutional investors across the United Kingdom, Europe, Asia, the United States, and the Middle East. The order book closed at approximately twice oversubscribed. The notes are rated A by S&P Global Ratings and A3 by Moody's Ratings, reflecting AFC's long-term issuer ratings.

Samaila Zubairu, President & CEO of AFC, said: “Achieving our tightest-ever pricing on a US dollar benchmark issuance demonstrates the strength of our credit profile, the consistency of our financial performance, and the trust we have built with investors over time.”

Executive Board Member and Head of Financial Services at AFC, Banji Fehintola, added that the first participation of an African central bank further diversifies the corporation’s funding base and advances its strategy to mobilise African institutional capital to finance the continent's development.

Issued under AFC's $5 billion Global Medium-Term Note Programme, the proceeds will support the corporation's general funding requirements and further strengthen its capacity to finance critical infrastructure and industrial projects across Africa. The transaction was led by Abu Dhabi Commercial Bank PJSC, First Abu Dhabi Bank PJSC, Goldman Sachs International, J.P. Morgan Securities plc, Mizuho International plc, MUFG Securities EMEA plc, Standard Chartered Bank, and The Standard Bank of South Africa Limited, which served as Joint Lead Managers.

Established in 2007, AFC has invested $19 billion across Africa to support the delivery of high-quality infrastructure assets in power, natural resources, heavy industry, transport, and telecommunications.