African Export-Import Bank (Afreximbank) (www.Afreximbank.com), through its Advisory and Capital Markets (ACMA) division, has acted as Joint Lead Manager for the debut US$300 million RegS-only international senior unsecured notes issued by Mauritius Commercial Bank (MCB) under its US$3 billion Global Medium Term Note Programme.
The Notes offering, which was announced on 19 April 2023 following a global virtual investor roadshow, attracted strong demand from regional and international investors, with oversubscription supported by high-quality asset managers and financial institutions from Africa (36%), UK/Europe (35%), MENA/Asia (24%), and US offshore (5%) respectively.
MCB will use bond proceeds to fund general corporate purposes and diversify its funding sources, including for expansion into Africa. The Notes, rated Baa3 (stable) by Moody’s and approved for listing on the International Securities Market of the London Stock Exchange, carry a 5-year maturity (April 2028) with a fixed coupon of 7.950%.
Commenting on the transaction, Professor Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, said: “We are proud to have facilitated capital markets access for MCB in this landmark transaction marking the first Investment Grade-rated commercial bank senior bond out of Africa at present and the first international bond by any Mauritian non-sovereign issuer. Afreximbank’s support to MCB to mobilise additional funds for financing projects in Africa is a further affirmation to our commitment to supporting the African continent under all market conditions.”
Afreximbank acted as Joint Lead Manager for this Notes issuance alongside international Joint Bookrunners.
Distributed by APO Group on behalf of Afreximbank.
Amadou Labba Sall
Manager, Media Relations
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African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade. For 30 years, the Bank has been deploying innovative structures to deliver financing solutions that support the transformation of the structure of Africa’s trade, accelerating industrialization and intra-regional trade, thereby boosting economic expansion in Africa. A stalwart supporter of the African Continental Free Trade Agreement (AfCFTA), Afreximbank has launched a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the AfCFTA. Working with the AfCFTA Secretariat and the AU, the Bank is setting up a US$10 billion Adjustment Fund to support countries to effectively participate in the AfCFTA. At the end of 2022, Afreximbank’s total assets and guarantees stood at over US$31 billion, and its shareholder funds amounted to US$5.2 billion. The Bank disbursed more than US$86 billion between 2016 and 2022. Afreximbank has investment grade ratings assigned by GCR (international scale) (A), Moody’s (Baa1), Japan Credit Rating Agency (JCR) (A-) and Fitch (BBB). Afreximbank has evolved into a group entity comprising the Bank, its impact fund subsidiary called the Fund for Export Development Africa (FEDA), and its insurance management subsidiary, AfrexInsure, (together, “the Group”).
For more information, visit: www.Afreximbank.com