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Africa Finance Corporation (AFC) has raised $430 million (CHF 350 million) through a five-year digital bond. This makes it the first African institution to issue a digital bond on a regulated digital exchange, and it’s the largest digital bond ever issued in Swiss Francs.
The bond was priced at a coupon of 1.4925% and was issued under AFC’s $5 billion Global Medium-Term Note Programme.
The transaction was arranged by Commerzbank and Deutsche Bank.
It is structured as a tokenised security using Distributed Ledger Technology, with ownership recorded on a regulated digital register and settlement taking place through SIX Digital Exchange. The bond is listed and traded on the SIX Swiss Exchange.
“This transaction is about far more than achieving competitive pricing. It marks another significant milestone in AFC’s funding journey and underscores the confidence global investors continue to place in our strategy, credit strength, and development impact. As we continue to diversify and innovate our funding approach, expanding the range of capital solutions available to AFC will remain central to mobilising long-term financing at scale and delivering on our mandate to accelerate Africa’s industrialisation and economic transformation,” said Samaila Zubairu, president and CEO of AFC.
The proceeds will support AFC’s general funding requirements and strengthen the Corporation’s capacity to finance transformational infrastructure across Africa.
Approximately 90% of demand came from Swiss domestic investors, with the remaining 10% from international accounts. Banks and financial services institutions made up 57% of the order book, followed by asset managers at 37% and hedge funds at 6%.
AFC holds a dual investment-grade rating: A with a positive outlook from S&P and A3 with a stable outlook from Moody’s.
The issuance is AFC’s fourth and largest Swiss Franc bond to date, following a CHF 150 million Green Bond issued in 2020. The proceeds will support AFC’s general funding requirements and strengthen its capacity to finance infrastructure across Africa.
Banji Fehintola, Executive Board Member and Head of Financial Services at AFC, said: “This transaction is a proud milestone for our funding programme. Pricing the largest digital bond ever issued in the Swiss Franc market reflects not only the strength of AFC’s credit but the depth of trust that Swiss and international investors have placed in our strategy over time. The digital format of this bond is not an end in itself but a signal of our commitment to being at the frontier of innovation in the capital markets as we continue to diversify and strengthen AFC’s funding base to support Africa’s development.”
AFC was established in 2007 and has invested $19 billion across Africa since inception. AFC combines industry expertise with financial and technical advice, project structuring, development, and risk capital to support Africa’s infrastructure needs and foster sustainable economic growth.
The corporation has 48 member countries and focuses on power, natural resources, heavy industry, transport, and telecommunications infrastructure.
