The Africa Finance Corporation (AFC), Africa’s leading infrastructure solutions provider, has announced the successful issuance of its first $500 million perpetual hybrid bond. This transaction marks a major milestone in the financing of transformative infrastructure projects across the continent.
This bond, issued at a rate of 7.50% with no fixed maturity, attracted strong interest, reaching $1.1 billion in orders, or 1.5 times its initial amount. The transaction benefits from recognition as a 100% equity instrument by Moody’s, strengthening AFC’s financial position while providing strategic flexibility to finance high-impact projects.
Funds raised will support ambitious initiatives like the Lobito Corridor rail project, which connects resource-rich landlocked countries to global markets, and the Red Sea Renewable Energy Project in Djibouti. These projects aim to boost industrialization and economic integration in Africa while reducing dependence on imports.
According to Samaila Zubairu, President of the AFC, this hybrid bond illustrates the institution’s commitment to mobilizing global capital for sustainable projects in Africa, even in a tense global financial context. This success also reflects the growing confidence of international investors in the AFC, already reinforced by previous financing such as a $1.16 billion syndicated loan obtained in 2023.
This initiative is part of an emerging trend among multilateral development banks, like the African Development Bank, which recently launched its own hybrid bond. By structuring innovative instruments, the AFC sets new standards to diversify sources of financing and attract global investors to Africa.
