Published On: Tue, Jan 24th, 2017

Maiden AFC Islamic bond over-subscribed

afclogoLAGOS, (CAJ News) – AFRICA Finance Corporation (AFC), the Lagos-based pan-African multilateral development finance institution , has issued the highest-ever rated Sukuk (Islamic bond) from an African institution.
Following high levels of investor interest, the initial target of US$100 million was more than twice oversubscribed, resulting in the transaction being upsized to US$150 million and a final order book of approximately US$230 million.
The Sukuk is AFC’s second foray into Islamic finance. The corporation accepted a US$50 million 15-year line of financing from the Islamic
Development Bank (IDB) in 2015 to finance Islamic Finance-compliant projects located across the numerous African IDB member countries.
The privately-placed 100-percent Murabaha Sukuk, which has been awarded an A3 senior unsecured rating by Moody’s Investors Service, has a three year tenor and will mature on 24 January 2020.
Emirates NBD Capital, MUFG and RMB acted as Joint Bookrunners and Joint Lead Managers with Emirates NBD Capital also acting as the Sole Global Coordinator.
Andrew Alli, AFC President and Chief Executive Officer, said this Sukuk represented a milestone in their financing activities.
“The milestone will enable us to further diversify our funding sources, to build new relationships with key investors in international markets and help us diversify our portfolio of projects to continue delivering real impact across the continent.”
AFC, which is also a project developer, has a diverse funding base, with a range of funding from sources across different markets.
Last year the corporation issued its debut Swiss Franc denominated long three-year bond, raising CHF 100 million, and accepted a US$150 million 15-year loan facility from KfW Development Bank.
CAJ News

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