Africa Finance Corporation (AFC) has raised CHF 350 million through a five-year Digital Bond, marking what it describes as a first for an African institution in issuing a digital bond listed, traded and settled on a regulated digital exchange.
The transaction is also the largest digital bond issued in the Swiss Franc market, further strengthening AFC’s presence in international capital markets. The bond carries a 1.4925% coupon and was issued within AFC’s existing US$500 million benchmark funding programme.
The issuance attracted strong investor participation, with approximately 90% of demand coming from Swiss domestic investors and 10% from international accounts. Banks and financial institutions accounted for 57% of the orderbook, followed by asset managers at 37% and hedge funds at 6%.
The digital bond is structured as a tokenised security using Distributed Ledger Technology (DLT), with ownership recorded on a regulated digital register and settlement conducted through regulated digital market infrastructure.
The bond is listed and admitted for trading on the SIX Swiss Exchange and deposited with SIX Digital Exchange, with settlement handled through SIX SIS AG.
AFC said the proceeds will support its general funding requirements and strengthen its ability to finance infrastructure and development projects across Africa.
The transaction represents another step in the adoption of digital capital-market infrastructure while demonstrating growing interest in innovative funding structures for African development institutions.
