AFC issues largest Swiss franc digital bond

Africa Finance Corporation (AFC) successfully raised CHF 350 million (approximately $431 million) through a five-year digital bond, marking the first digital bond issued by an African institution and the largest digital bond ever issued in the Switzerland — Swiss franc market. The bond carries a 1.4925% coupon and was issued under AFC's $5 billion Global Medium-Term Note Programme. It is structured as a tokenized security using distributed ledger technology, listed on the SIX Swiss Exchange, and deposited with SIX Digital Exchange, with clearing and settlement handled by SIX Swiss Exchange. The transaction attracted strong investor demand, with about 90% of demand from Swiss investors and 10% from international accounts. Banks and financial institutions took 57% of the order book, asset managers 37%, and hedge funds 6%. Commerzbank acted as technical lead, while Deutsche Bank helped arrange the transaction. The proceeds will support AFC's general funding needs and its capacity to finance infrastructure projects across Africa. This is AFC's fourth Switzerland — Swiss franc issuance and follows its CHF 150 million green bond in 2020. AFC holds investment-grade ratings: A with positive outlook from S&P Global Ratings and A3 with stable outlook from Moody s Ratings. The deal reflects growing adoption of digital bonds in regulated markets, with the UK also planning its first digital sovereign bond.