AFC issues $750m Eurobond at lowest yield
Africa Finance Corporation has issued a $750 million Eurobond at its lowest yield to date. The 2.875% 144a/ Reg S Notes, due 2028, were priced at 175 bps over US Treasuries to yield 2.991%.
The issuance was arranged by BofA Securities, First Abu Dhabi Bank, Goldman Sachs International, J.P. Morgan, and MUFG as Joint Bookrunners. White & Case, Clifford Chance, and Aluko & Oyebode were legal advisers.
AFC has progressively reduced its funding cost on dollar benchmark issuances with a shorter dated five-year $700 million Eurobond in 2020 at 3.250%, a ten-year $500 million Eurobond in November 2019 at 3.895%, and a seven-year $650 million Eurobond in June 2019 at 4.500%.
This is the sixth Eurobond under AFC’s $5 billion Global Medium-Term Note programme, which is rated A3 by Moody’s Investors Service. AFC will use proceeds from the bond to continue investing in infrastructure.
