London-headquartered investment company Mainbridge has issued an $800-million Africa-related bond offering on the Frankfurt Stock Exchange (FSE).
The bond is structured to appeal to long-term asset investors seeking access to African growth.
Mainbridge is targeting investments in asset classes that will form the backbone of the African economy in coming years.
Proceeds from the bond issue will focus on companies and projects supporting physical and socioeconomic infrastructure across the renewables, agriculture, ports and logistics, energy and technology sectors.
The bond has a ten-year term and is structured to support Mainbridge’s limited partner commitment for an upcoming African Infrastructure Fund.
The bond marks one of a handful of offerings listed on the European exchanges that is uniquely focused on Africa and gives astute investors access to a liquid product-oriented and diversified investment portfolio across the continent.
The African Development Bank estimates Africa’s economy to grow by 4% this year and 4.3% in 2024. The bank’s projections also show that 19 African countries will experience growth rates surpassing 5% in 2023, with some reaching 22% growth in 2024.
“Economic growth is driving one of the highest urbanisation rates in the world and supporting an increasingly vibrant middle class,” Mainbridge states.
Improvements in political risk management and corporate governance provide the necessary framework for an increased participation by a growing and seasoned private sector, which Mainbridge aims to spearhead.
To achieve this, Mainbridge continues to grow its continent-wide ecosystem of locally based networks that provides timely proprietary intelligence from which it creates material insights. These insights are then used to create a tailor-made framework for the management, execution and realisation of investments.
Mainbridge is led by an experienced and internationally recognised leadership team with African-rooted footprints and as a company, it subscribes to sound corporate governance that includes transparency and accountability.
Mainbridge CEO Bola Adefehinti comments that the bond listing is a landmark moment and represents a key component of the building blocks that form Mainbridge's core value proposition of unlocking hidden value across the African continent.
“Unlocking this hidden value is achievable through a combination of targeted use of capital and investment opportunities within a framework that benefits beyond traditional shareholders to wider stakeholders across Africa."