Photo by: Bloomberg
The Africa Finance Corporation (AFC) has issued a $20-million, one-year note to an unnamed Thai institutional investor under the corporation’s global medium term notes (GMTN) programme.
Following the one-year fixed interest rate note issuance, AFC would immediately enter into an interest rate swap agreement with Standard Chartered Bank to change the corporation’s fixed interest rate obligation under the note into a floating interest rate.
AFC established the $3-billion GMTN programme in April and issued its debut $750-million, five-year eurobond under it.
“This transaction not only strengthens the financial position from which AFC can continue to drive investment and growth across Africa, but also demonstrates investor confidence in the AFC, from geographies as far reaching as South-East Asia,” AFC senior VP and treasurer Banji Fehintola said.