Africa Finance Corp. (AFC), an infrastructure solutions provider, has successfully priced a $500 million perpetual hybrid bond. This landmark transaction, which is AFC’s debut hybrid bond issue, demonstrates AFC’s leadership in accessing global capital markets and financing transformative infrastructure projects across the continent.
Priced at a coupon of 7.50 percent with no fixed maturity, AFC’s maiden perpetual bond attracted robust demand, peaking at $1.1 billion in orders and closed with 1.5 times oversubscription. The issuance will further enhance AFC’s robust capital position while providing investors with certainty during the initial non-callable period of 5.25 years, after which the corporation would manage the bond in line with its financial strategy.
By blending features of both equity and debt, the hybrid instrument, which offers 100 percent equity credit recognition from Moody’s Investor Services, strengthens AFC’s balance sheet while maintaini