African financial company issues first $431 million digital bond

Africa Finance Corporation has raised 350 million Swiss francs or about $431 million, through its first digital bond, becoming the first African institution to issue such debt through a regulated exchange and central securities depository. Summary The five-year digital bond carries a coupon rate of 1.4925%. Around 90% of investor demand came from Swiss accounts. Commerzbank and Deutsche Bank arranged the transaction. AFC will use the proceeds to support infrastructure financing across Africa. AFC digital bond raises $431 million Ledger Insights reported that Africa Finance Corporation issued the five-year bond through SIX, using its SDX digital platform for clearing and settlement. The transaction represents the first digital bond from an African institution to be processed through both a regulated exchange and a central securities depository. Priced with a coupon of 1.4925%, the 350 million-franc bond is among the larger digital debt issues completed through the Swiss platform. UBS issued a 375 million-franc digital bond in 2022, according to Ledger Insights. AFC separately described its offering as the largest Swiss franc-denominated digital bond from an international issuer. The...