Africa Finance Corp Returns to Eurobond Market with $500m Oversubscribed Bond.

Africa's leading infrastructure solution provider, the Africa Finance Corporation (AFC), has re-entered the international debt markets impressively by issuing a $500 million 144A/Reg S Eurobond. 

Why does it matter: The recent interest rate reduction by the US Federal Reserve, the first in nearly four years, has created a strategic opportunity for African nations and corporations to revive interest in Eurobonds. Nigeria and Angola are positioned to take advantage of the increased accessibility of loans for riskier markets like sub-Saharan Africa. AFC's benchmark five-year note, featuring a 5.55% coupon, gained significant interest from high-quality global investors across Europe, Asia, the United States, and the Middle East, resulting in over two and a half times oversubscription. 

The bottom line: At its core, the AFC has been instrumental in shaping the investment landscape, actively engaging in and spearheading some of Africa's most innovative financing initiatives. This is particularly noteworthy as the continent embarks on ambitious infrastructure projects that require private and public participation. It underscores the eagerness among global investors to support investment-grade issuers throughout the continent.