Arab Finance: The African Export-Import Bank (Afreximbank) successfully priced a $1.5 billion dual-tranche Reg S/144A senior unsecured benchmark Eurobond, according to a press release.

The offering marks the bank’s first US dollar public bond issuance since July 2021 and its largest bond issuance to date. It comprised two $750 million tranches: a five-and-a-half-year note maturing in January 2032 and a 10-year note maturing in July 2036.

The transaction attracted strong interest from institutional investors across the UK, Europe, Asia, and the US, with the order book peaking at $3.8 billion, making the transaction approximately 2.5 times oversubscribed.

The robust demand enabled Afreximbank to tighten pricing by 37.5 basis points on both tranches. The bank priced the five-and-a-half-year notes at a yield of 6.25% and the 10-year notes at 7.125%.

Chandi Mwenebungu, Afreximbank’s Managing Director, Treasury and Markets, and Group Treasurer, said: “For us, this is a clear sign that the market continues to believe in Afreximbank’s work and in Africa’s economic prospects. Our role remains to connect capital to the opportunities that will drive trade, industrialisation and growth across the continent.”

HSBC Bank acted as the global coordinator, while Standard Bank of South Africa Limited, Standard Chartered Bank, Commerzbank Aktiengesellschaft and MUFG Securities EMEA acted as joint lead managers and joint bookrunners.

Meanwhile, Afreximbank plans to begin construction of a gold refinery in Egypt by the end of 2026, with investments ranging between $50 million and $100 million.