Africa Finance Company (AFC) (www.AfricaFC.org), the continent’s main infrastructure options supplier, at present introduced an impressive return to the worldwide debt capital markets, efficiently issuing a US$500 million 144A/Reg S Eurobond.
The benchmark five-year Word, issued at par with a coupon of 5.55%, had a damaging concession with pricing contained in the Company’s excellent yield curve, ensuing within the tightest T-spread ever achieved by AFC on a 5-year US greenback benchmark and enabling AFC to broadly reset its yield curve within the secondary market. The issuance generated vital curiosity throughout Europe, Asia, United States, and the Center East, leading to a peak e-book that was over two and a half occasions oversubscribed.
“After about three years of absence from the Eurobond market, we’re pleased with the overwhelmingly constructive reception for this bond issuance, which underscores the worldwide capital market’s continued confidence in AFC’s credit score story, our holistic investor engagement technique and assist for our mandate to develop and finance infrastructure initiatives that may allow Africa’s sustainable industrialization and prosperity,” mentioned Samaila Zubairu, President&CEO of AFC. “The numerous oversubscription and success of this bond problem is an endorsement of our spectacular monetary efficiency, enterprise technique, conservative monetary insurance policies and our impression in main transformative change in Africa.”
With an order e-book exceeding US$1.2 billion, the bond drew high-quality buyers looking for publicity to investment-grade issuers like AFC. The Company’s constant A3 credit standing, upheld since 2014 and just lately reaffirmed by Moody’s, with a ranking outlook change from Unfavorable to Steady, additional boosted the bond’s attraction amongst institutional buyers. The breakdown of the order e-book mirrored AFC’s very sturdy capital market entry, with remaining allocation of Europe: 57%; North America: 23%; Center East: 15%; and Asia: 5%.
The Eurobond was issued below AFC’s $5 billion International Medium-Time period Word (GMTN) programme. The proceeds from the bond, listed on the Euronext Dublin and the London Inventory Change, will assist AFC’s mission to drive fast industrialisation and speed up improvement impression throughout Africa.
Banji Fehintola, Govt Board Member and Head of Monetary Companies, commented: “The success of this bond indicators extra than simply sturdy market entry for AFC; it represents a gateway for different African issuers to observe swimsuit. Regardless of market volatility, our means to safe this stage of demand affirms the resilience of AFC’s credit score profile and opens new doorways for Africa’s infrastructure financing.”
The issuance was coordinated by a consortium of worldwide monetary establishments, together with BofA Securities, Citigroup, First Abu Dhabi Financial institution, and Goldman Sachs Worldwide as International Coordinators and Joint Bookrunners, alongside Rand Service provider Financial institution and SMBC Nikko as Joint Bookrunners.
Distributed by APO Group on behalf of Africa Finance Company (AFC).
Media Enquiries:
Yewande Thorpe
Communications
Africa Finance Company
Cellular : +234 1 279 9654
Electronic mail : yewande.thorpe@africafc.org
About AFC:
AFC was established in 2007 to be the catalyst for pragmatic infrastructure and industrial investments throughout Africa. AFC’s strategy combines specialist trade experience with a concentrate on monetary and technical advisory, undertaking structuring, undertaking improvement, and danger capital to handle Africa’s infrastructure improvement wants and drive sustainable financial progress.
Seventeen years on, AFC has developed a monitor document because the associate of selection in Africa for investing and delivering on instrumental, high-quality infrastructure property that present important companies within the core infrastructure sectors of energy, pure assets, heavy trade, transport, and telecommunications. AFC has 43 member nations and has invested US$13 billion throughout Africa since inception.