Afreximbank announces issuance of $500m bond

The African Export-Import Bank (Afreximbank) has announced the issuance of a $500 million bond as part of an equity raising effort to further strengthen its banking operations.

The bond, listed on the Irish Stock Market, has a five-year maturity date of June 4, 2018 and was issued at a coupon rate of 3.875 % per annum. The issuance enjoyed strong investor support and generated significant orders that saw the book grow in excess of $1.2 billion on the opening day.

“We are very excited at the success of this issuance, the extremely high interest in our bond, which resulted in the book reaching well beyond $1.2 billion, reflects the continuing confidence which the international investment community has in Afreximbank. The proceeds of this exercise will enable the Bank to meet its goal of delivering even effective trade financing services to our customers as we increase the volume of our business,” said Jean-Louis Ekra, President of Afreximbank

According to the release, in December 2012, Afreximbank’s shareholders approved a change in the Bank’s Charter to increase its authorized capital from $750 million to $5 billion in a move aimed at giving it a more robust foundation to execute its mandate of financing and promoting African trade.

It said, Afreximbank is rated Baa2 by Moody’s and BBB- by both S&P and Fitch rating agencies. The issuance is the third by Afreximbank in the international debt capital market, where it issued its first bond for $300 million in 2009 and a second for $500 million in 2011.

By Dorcas Appiah