LAGOS, Nigeria - (BUSINESS WIRE) - Africa Finance Corporation (“AFC” or the “Company”), Africa’s leading infrastructure solutions provider, today announces that it has successfully issued a Euro- US$700 million Reg S bond, due June 16, 2025 (“the US$700 million” Eurobond” or “the bond issue”).

The US$700 million Eurobond is AFC's first bond issue of 2020 with a coupon of 3.125%. The bond has generated strong global interest in Europe, Asia and the Middle East despite the difficult global economic environment, which allows it to be approximately 3 times oversubscribed. The order book, which grew to over US$2.1 billion, was comprised of high quality fixed income investors seeking exposure to a quality investment grade issuer such as AFC.

The investor base for the “Eurobond” reflects the geographically diverse funding opportunities for AFC. The breakdown of the order book showed the participation of Asia (11%), the Middle East and Africa (30%), the United States offshore (4%), the United Kingdom (18 %), Switzerland (16%), Germany (13%) and other parts of Europe (8%), demonstrating a strong appetite for African investment from around the world.

This bond issue is the fifth Eurobond under the Company's global US$5 billion Medium-Term Note program, which was recently increased by US$3 billion in line with the Company's strategy. over five years. Moody's Investor Services has assigned an A3 rating to the AFC program. And the issuance of bonds which is a drawdown under the Global Medium Term Notes program listed on the Irish Stock Exchange.

In strict compliance with the Company's protocol to combat COVID-19, marketing and execution was conducted virtually, and AFC entered into relationships with new long-standing investors in Asia, Europe and the Middle East. through a series of individual calls and a global meeting for virtual investors.

Eurobond proceeds will be used for general corporate purposes as it pursues its mission to catalyze industrialization on the African continent.

Samaila Zubairu, Chairman and CEO of AFC, commented on the announcement:

“AFC is pleased with the placement of our latest Eurobond, which reflects market confidence in the strategy and execution adopted by AFC, and demonstrates the continued access of African issuers to global capital markets. placement's success and strong take-up despite challenging global economic conditions, reflect AFC's attractiveness as a gateway to African infrastructure and institutional capital's industrial opportunities, and will finance the accretive valuation of African commodities and will create jobs for young Africans".

Banji Fehintola, Principal Director and Treasurer of AFC, added: "The success of AFC's most recent bond issue in a very challenging and fragile macroeconomic environment is testimony to AFC's strong market access, strength of our credit and well-established investor engagement program Despite recent turmoil in global markets, the successful issuance of this bond will also open the door for other African issuers to tap into the bond market this year. Proceeds from the bond will provide AFC with additional liquidity to continue funding critical infrastructure projects across the continent, in line with our development mandate.”

The bond issue was arranged by BofA Securities , JPMorgan and MUFG as global coordinators and co-leads, together with First Abu Dhabi Bank and Goldman Sachs International as co-leads.

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Notes to Editors

About AFC - www.africafc.org

AFC is a leading multilateral financial institution. It was founded in 2007 with a capital of 1.1 billion dollars with the aim of stimulating private sector investment in infrastructure across Africa. With a current balance sheet of approximately $6.1 billion, AFC is the continent's second largest multilateral investment finance institution. Moody's Investors Service rated it A3/P2 (negative outlook). AFC raised $1,150 million in 2019 ($650 million and $500 million), $500 million in 2017 and $750 million in 2015 through Eurobond issues, in addition to its global banknote program medium term (MTN) in the amount of 3 billion dollars approved by its board of directors. All Eurobond issues were oversubscribed and attracted investors from Asia, Europe and the United States.

AFC's investment policy is based on in-depth knowledge of the sector, but also focuses on financial and technical advice, project structuring and development and risk capital, in order to meet infrastructure development needs. in Africa, and ensure sustainable economic growth. AFC invests in high-quality infrastructure that provides essential services in key sectors of energy, natural resources, heavy industry, transport and telecommunications. To date, the Group has invested over $7.2 billion in projects across 30 African countries.