Afreximbank returns to US dollar bond market with $1.5 billion

 

Afreximbank, which finances and promotes intra- and extra-African trade, has been diversifying its funding sources.  [Courtesy]

African Export-Import Bank has raised $1.5 billion in its largest-ever bond issuance, marking a triumphant return to the US dollar public market after a five-year absence and signaling strong investor appetite for African credit despite elevated global bond yields.

The Cairo-based multilateral lender priced a dual-tranche Reg S/144A senior unsecured Eurobond on Tuesday, its first US dollar public issuance since July 2021. The deal comprised $750 million with a 5.5-year maturity, due January 2032, and another $750 million with a 10-year tenor, due July 2036.

Demand surged to $3.8 billion at its peak, making the offering roughly two times oversubscribed, with interest evenly split across both tranches. Supported by the robust investor response, Afreximbank tightened pricing by 37.5 basis points on each tranche, landing final yields of 6.25 per cent for the shorter-dated paper and 7.125 per cent for the 10-year bonds.

The issuance comes as US Treasury yields trade near multi-year highs, with the 10-year note hovering around 4.64 per cent and the 30-year bond at 5.129 per cent. Investors are pricing in roughly a 56 per cent chance of a Federal Reserve rate hike in September, according to CME FedWatch, underscoring the challenging environment for emerging market issuers. Against that backdrop, Afreximbank's ability to draw $3.8 billion in orders underscores the depth of demand for well-regarded African credits, the bank said. 

"This successful issuance shows the confidence that investors continue to place in Afreximbank and in Africa's growth story," said Chandi Mwenebungu, the bank's Managing Director for Treasury and Markets and Group Treasurer. 

"Our role remains to connect capital to the opportunities that will drive trade, industrialisation and growth across the continent."

Afreximbank, which finances and promotes intra- and extra-African trade, has been diversifying its funding sources in recent years. 

It raised over $800 million in 2025 through Samurai bonds in Japan and Panda bonds in China, following Samurai issuances in 2024. 

The bank also concluded a $2 billion oversubscribed syndicated loan in March 2026.

The successful return to the US dollar market follows a period of rating volatility. In June, S&P Global restored Afreximbank's investment-grade rating to BBB+ with a stable outlook — its first assessment in nearly 12 years and one notch above Moody's Baa2. 

The upgrade came months after the bank severed ties with Fitch Ratings, accusing the agency of misjudging its mission following a downgrade to junk status amid disagreements over its role in debt restructurings for Ghana and Zambia.

At the end of December 2025, Afreximbank's total assets and contingencies stood at over $48.5 billion, with shareholder funds of $8.4 billion. 

The bank, established over 30 years ago, is a key backer of the African Continental Free Trade Agreement (AfCFTA) and has launched a Pan-African Payment and Settlement System (PAPSS) adopted by the African Union as the platform to underpin the trade pact's implementation.

HSBC Bank plc acted as Global Coordinator on the transaction, with Standard Bank of South Africa, Standard Chartered Bank, Commerzbank and MUFG Securities EMEA plc serving as Joint Lead Managers and Joint Bookrunners.

The 5.5-year tranche matures in January 2032, while the 10-year tranche matures in July 2036. Proceeds will be used for general corporate purposes, including trade finance and supporting the bank's mandate to drive industrialisation across the continent.