AFC taps Swiss market with record digital bond

File: President of the African Finance Corporation, Samaila Zubairu

Africa Finance Corporation has raised CHF350 million through a five-year digital bond, marking a major expansion of the institution’s presence in the Swiss capital market.

The transaction makes AFC the first African institution to issue a digital bond that is listed, traded and settled on a regulated digital exchange.

It also represents the largest digital bond ever issued in the Swiss franc market, highlighting the growing use of digital infrastructure in international debt markets.

The bond carries a 1.4925 per cent coupon and forms part of AFC’s $500m benchmark issuance completed in June 2026. The transaction was conducted under the corporation’s $5bn Global Medium-Term Note Programme.

Unlike a conventional bond, the instrument is structured as a tokenised security using Distributed Ledger Technology. Its ownership is recorded on a regulated digital register, while settlement is carried out through regulated digital market infrastructure.

The bond has been listed and admitted for trading on the SIX Swiss Exchange and deposited with the SIX Digital Exchange, with clearing and settlement handled by SIX SIS AG.

AFC said the funds raised will be used for its general funding needs, strengthening its ability to provide financing for infrastructure projects supporting Africa’s economic transformation.

Commerzbank AG acted as technical lead for the transaction, while Deutsche Bank AG London Branch, through its Zurich Branch, served as arranger.

The issuance came amid continued geopolitical uncertainty but benefited from positive investor sentiment and AFC’s investment-grade credit ratings. S&P Global Ratings assigns the Corporation an A rating with a positive outlook, while Moody’s rates it A3 with a stable outlook.

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Investor participation was heavily concentrated in Switzerland, with about 90 per cent of demand coming from domestic Swiss investors and the remaining 10 per cent from international accounts.

Financial institutions dominated the order book, accounting for 57 per cent of total demand, while asset managers contributed 37 per cent and hedge funds six per cent.

The transaction represents AFC’s fourth and largest Swiss franc issuance to date, building on its CHF150 million Green Bond issued in 2020, which was its first green bond.

AFC President and Chief Executive Officer, Samaila Zubairu, said the transaction demonstrated continued investor confidence in the Corporation’s strategy, credit strength and development mandate.

He said the institution would continue diversifying its funding sources and developing new capital solutions to mobilise long-term financing for Africa’s industrialisation and economic transformation.

Head of Financial Services at AFC, Banji Fehintola, described the transaction as an important milestone for the Corporation’s funding programme.

He said the record size of the digital bond reflected both AFC’s credit strength and the confidence Swiss and international investors have placed in the institution.

Fehintola added that the digital structure was part of AFC’s broader effort to remain at the forefront of capital-market innovation while diversifying its funding base to support infrastructure development across Africa.