AFC raises $432 million digital bond, sets record in Swiss market

Africa  Finance Corporation (AFC), Africa’s infrastructure solutions provider, has raised CHF 350 million ($432 million) through a five-year digital bond, becoming the first African institution to issue a digital bond listed, traded and settled on a regulated digital exchange.

Africa’s digital finance push

The transaction also ranks as the largest digital bond ever issued in the Swiss franc market, giving Africa Finance Corporation, or AFC, another milestone in its international funding strategy.

The bond carries a 1.4925% coupon and was issued under AFC’s $5 billion Global Medium-Term Note Programme. The transaction forms part of the corporation’s broader $500 million benchmark issued in June.

For AFC, the deal expands its access to Swiss investors while demonstrating how digital securities can be used to raise large-scale funding for African infrastructure.

The bond is structured as a tokenized security using Distributed Ledger Technology (DLT). Ownership is recorded on a regulated digital register, while settlement takes place through regulated digital market infrastructure.

Swiss investors drive demand

Swiss investors accounted for about 90% of the orderbook, with international accounts making up the remaining 10%. Banks and financial institutions represented the largest investor group at 57%, followed by asset managers at 37% and hedge funds at 6%.

The transaction comes as global investors continue to assess credit risk, interest rates and geopolitical uncertainty. AFC’s investment-grade ratings — A with a positive outlook from S&P and A3 with a stable outlook from Moody’s helped support investor demand.

“This transaction is about far more than achieving competitive pricing,” Samaila Zubairu, AFC’s president and CEO, said. He described the issuance as another milestone in the corporation’s funding strategy and a sign of investor confidence in its credit strength and development mandate.

Banji Fehintola, AFC’s executive board member and head of financial services, said the Swiss franc issuance reflected the strength of the corporation’s credit and investor confidence built over time.

AFC deepens global funding base

Founded in 2007 and listed on LSE, AFC has invested more than $19 billion across 36 African countries and has 48 member states. Its investments span energy, transportation, telecommunications, natural resources and industrial development.

The latest bond adds digital capital markets to AFC’s expanding funding toolkit as the corporation seeks to finance infrastructure projects across Africa while attracting a broader pool of international capital.