Africa Finance Corporation Raises $431M in Digital Bond Issuance

BREAKING NEWSAugust 20, 2026 at 7:41 PM UTC

TLDR

AFC raises CHF 350 million through a 5-year digital bond, marking its first digital bond from an African entity listed, traded, and settled through regulated digital market infrastructure.
Tokenized security utilizes distributed ledger technology, listed on SIX Swiss Exchange, with 90% demand from Swiss investors.
Funds will support African infrastructure and industry projects, adding to AFC's history of significant investments across various sectors since its establishment in 2007.

Africa Finance Corporation raised CHF 350 million, or about $431 million, through a 5-year digital bond as the infrastructure lender expands its funding sources. The August 12 issue is reportedly the first digital bond from an African institution to be listed, traded and settled through regulated digital market infrastructure. It carries a 1.4925% coupon and was issued under AFC’s $5 billion Global Medium-Term Note Program.

The bond is a tokenized security that uses distributed ledger technology to record ownership. It is listed on the SIX Swiss Exchange and deposited with SIX Digital Exchange, with clearing and settlement handled through SIX SIS. AFC said it is the largest digital bond issued in the Swiss-franc market. Commerzbank acted as technical lead, while Deutsche Bank helped arrange the transaction.

Swiss investors accounted for about 90% of demand, with international accounts making up 10%. Banks and other financial institutions took 57% of the order book, asset managers accounted for 37% and hedge funds took 6%. The deal is AFC’s fourth Swiss-franc issuance and follows its CHF 150 million green bond issued in 2020.

The transaction adds to AFC’s debt raising in 2026. The corporation also issued a $500 million, 5-year senior unsecured bond earlier this year. AFC has an A rating with a positive outlook from S&P Global Ratings, while Moody’s affirmed its A3 rating with a stable outlook on August 14. The institution had total assets of $19.23 billion and net profit of $444.8 million at the end of 2025.

AFC will use the proceeds for general funding needs, giving it more capacity to finance infrastructure and industry across Africa. Founded in 2007, the institution has 48 member countries and has invested about $18.5 billion since inception. Its portfolio covers power, transport, telecommunications, natural resources and heavy industry.

Points clés à retenir

AFC’s bond matters less because it uses blockchain technology and more because of what that technology did not change. Investors still bought a regulated bond from an investment-grade institution, with a fixed coupon, a 5-year maturity and settlement through market infrastructure. The difference is that ownership records use distributed ledger technology instead of relying only on the systems used for traditional securities. That makes the transaction part of a wider move by financial markets to test whether tokenization can make issuing, trading and settling securities more efficient without removing existing legal and investor protections. For AFC, the deal also opens another funding channel. About 90% of demand came from Swiss investors, giving the corporation access to capital outside its dollar investor base. That matters for an institution financing infrastructure projects that can require years of funding before they produce returns. AFC is not assigning the CHF 350 million to one project. The money will support its general funding pool, which can be used across lending, project development and investment. The main test will therefore be whether broader access to capital helps AFC increase financing for projects that can generate power, transport links, industrial capacity and digital infrastructure across its member countries.

Finance