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Media Release
25 October 2024
RMB partners with Africa Finance Corporation on USD500 million Eurobond issuance
Rand Merchant Bank (“RMB”) acted as Joint Lead Manager and Bookrunner for Africa Finance Corporation’s (“AFC”) USD500 million senior unsecured Rule 144A/Reg S Eurobond. This deal marks AFC’s return to the international debt capital markets, issuing its first hard-currency bond in three years.
The transaction underscores RMB’s capabilities in debt financing solutions, showcasing its International Debt Capital Markets (“DCM”) offering and its access to a deep and diverse pool of developed market investors.
AFC is a leading multilateral development finance institution focused on infrastructure financing and advisory across Africa. The issuance re-establishes AFC’s credit with international investors, targeting a global audience that includes United States-based Qualified Institutional Buyers (“QIBs”). The transaction garnered strong demand, with the order book 2.45x oversubscribed, and total demand exceeded USD1.2 billion by close of pricing.
“Despite a volatile geopolitical environment, RMB’s International DCM team successfully navigated the timing and execution of this important transaction. The marketing process, conducted virtually, allowed AFC to engage with its most important accounts globally, demonstrating the agility and adaptability of the elected approach,” says Lwandi Nene, Co-Head of Debt Capital Markets at RMB.
The transaction also benefited from positive market sentiment following the U.S. Federal Reserve’s recent 50bps rate cut and Moody’s move to a stable rating outlook on AFC’s A3 credit rating.
This Eurobond issuance forms a vital step towards funding Africa’s growing infrastructure needs, further highlighting that the international debt capital markets are reopening for African credits. As a long-standing partner to AFC, RMB has served as an active bookrunner on four occasions, playing a pivotal role in supporting AFC’s ongoing financing and advisory needs.
"RMB remains committed to supporting AFC’s vision for infrastructure development across Africa, offering strategic financing solutions that meet the demands of global investors while addressing the continent’s critical development challenges,” concludes Nene.
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