Africa Finance Corporation, a multilateral development financial institution based in Lagos, Nigeria, has sold a eurobond at its lowest yield to date. The US$750 million, 2.875% notes due 2028 were priced at 175bp over the US treasuries to yield 2.991%.
The notes were offered in the 144a/ Reg S market. Joint bookrunners were MUFG, BofA Securities, First Abu Dhabi Bank, Goldman Sachs International, and JP Morgan. White & Case, Clifford Chance and Aluko & Oyebode acted as legal advisers.
The final order book was 3.5 times oversubscribed at approximately US$2.6 billion, with funds coming from more than 200 investors, across the United Kingdom (32%), Continental Europe (23%), the Middle East (22%), Asia (13%), and the Americas (10%).
AFC is focused on bridging Africa’s large infrastructure deficit by financing projects that have high developmental impact on the economies of African countries. AFC’s approach combines specialist industry expertise with a focus on financial and technical advisory, project structuring, project development and deployment of risk capital to address the continent's infrastructure and industrial development needs.
“This successful issuance follows a year of severe market disruption exacerbated by the Covid-19 pandemic,” says Banji Fehintola, AFC's senior director and treasurer. “We are delighted with the strong demand from a diverse pool of accounts, which has further diversified our funding sources.”
AFC president and chief executive officer Samaila Zubairu adds: “AFC will continue to mobilize capital for investments to accelerate sustainable development impact with greater focus on reducing Africa’s energy deficit and job creation challenges through climate resilient infrastructure, energy transition and other projects driving Africa’s economic recovery post-Covid."
AFC is one of Africa’s biggest investors in infrastructure development, and posted a 20% growth in total assets during the 2020 pandemic year. Its total assets reached US$7.36 billion as of December 31.