BY BUSINESS REPORTER
African Export-Import Bank (Afreximbank) has pulled off its biggest-ever fundraising exercise, raising a record US$1,5 billion through a dual-tranche Eurobond that drew overwhelming global investor demand, underscoring growing confidence in the lender's role in financing Africa's trade and industrialisation agenda.
The landmark issuance — Afreximbank's first US dollar public bond since 2021 — was about two times oversubscribed, with orders reaching US$3,8 billion from investors across the United Kingdom, Europe, Asia and the United States.
The strong appetite enabled the bank to secure more competitive pricing while reinforcing its ability to mobilise international capital for trade, infrastructure and economic transformation projects across Africa.
The bond was split into two US$750 million tranches: a 5,5-year note maturing in January 2032 and a 10-year note maturing in July 2036. Supported by the strong demand, Afreximbank tightened pricing by 37,5 basis points on both tranches, resulting in final yields of 6,25% and 7,125%, respectively.
The transaction attracted strong investor interest from the United Kingdom, Europe, Asia and the United States.
Buoyed by the strong demand, Afreximbank tightened pricing by 37,5 basis points on both tranches, resulting in final yields of 6,25% for the 5,5-year bond and 7,125% for the 10-year bond.
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The successful return to the US dollar bond market follows the bank's efforts to diversify its funding sources through alternative markets, including Samurai bond issuances in 2024 and 2025 and a Panda bond in 2025.
Afreximbank managing director for Treasury and Markets and group treasurer, Chandi Mwenebungu, said the transaction reflected investors' continued confidence in both the bank and Africa's economic outlook.
"This successful issuance shows the confidence that investors continue to place in Afreximbank and in Africa's growth story," Mwenebungu said.
"Our role remains to connect capital to the opportunities that will drive trade, industrialisation and growth across the continent."
HSBC Bank plc acted as global coordinator, while Standard Bank of South Africa Limited, Standard Chartered Bank, Commerzbank Aktiengesellschaft and MUFG Securities EMEA plc served as joint lead managers and joint bookrunners.
