The challenge
The African Finance Corporation’s (AFC) purpose is to assist Africa with funding for infrastructure development, while seeking a competitive return on capital for their shareholders. They provide development expertise and risk capital to contribute to positive economic growth on the continent. AFC required a complex debt finance solution to reshape its capital structure.
The RMB solution
RMB, the only African bank appointed as joint lead arranger in this $650-m Eurobond issuance, executed a funding solution which lengthened AFC’s maturity profile and raised new, competitively priced debt to fund ongoing infrastructure projects in Africa.
Proven results
AFC can now expand its funding of infrastructure development and growth in African. The Eurobond improves AFC’s prospective evaluations from ratings agencies, diversifies their international debt funding base and allows shareholders of the bond to participate in the new issuance, without the risk of double exposure through the tender offer.
| Client | African Finance Corporation |
|---|---|
| Deal value | US$650-m over 7 years |
| Sector | Infrastructure and Renewables |
| Expertise | Debt Capital Markets |
| RMB's role | Joint Lead Arranger |
