• Bank secures 81.8 billion yen from regular and retail samurai bonds

• Over 100 Japanese investors participate amid strong demand for short maturities

• Issue follows JCR’s A- rating affirmation and growing engagement with Japanese markets

The African Export-Import Bank (Afreximbank) has raised 81.8 billion yen (about $528 million) through a new samurai bond issue, the bank announced on Friday, November 28. This second entry into Japan’s bond market drew orders from more than 100 institutional and retail investors, reflecting what the bank described as “strong confidence among Japanese investors in Afreximbank’s credit.”

The transaction consisted of two components: regular bonds aimed at institutional investors and retail bonds for individual buyers. Afreximbank issued a 45.8-billion-yen, three-year tranche on the regular market after a series of non-deal roadshows in Tokyo, Kanazawa, Kyoto, Shiga, and Osaka, a global investor conference, and a two-day informal survey to gauge appetite for maturities of 2.5, 3, 5, 7, and 10 years.

The bank ultimately chose a three-year maturity, noting that investor demand focused on shorter terms as markets anticipated interest-rate hikes by the Bank of Japan. The regular tranche drew strong interest from asset managers (22.3%), life insurers (15.3%), and regional companies and high-net-worth investors (39.7%). Afreximbank did not disclose the coupon rate.

Separately, Afreximbank issued 36 billion yen in three-year retail samurai bonds—more than double its debut retail offering of 14.1 billion yen in November 2024.

Solid fundamentals amid economic uncertainty

SMBC Nikko Securities, which led and bookran both tranches, conducted a seven-day demand survey through its branch network followed by a six-day offering period. The issue benefited from high visibility, supported by Afreximbank’s outreach to Japanese investors, including its participation in the Tokyo International Conference on African Development (TICAD9). During the event, the bank held a seminar on African finance to present its mandate and credit profile.

In August, the Japan Credit Rating Agency reaffirmed Afreximbank’s A- rating with a stable outlook, citing “strong fundamentals despite an uncertain macroeconomic environment.” For the bank, the success of this second samurai issue reinforces the strength of its credit standing.

“The strong demand for both the regular and retail tranches reflects sustained confidence in Afreximbank’s credit and mandate. We remain committed to deepening our presence in the samurai market through regular investor engagement and continued collaboration with our Japanese partners,” said Chandi Mwenebungu, group treasurer and director of treasury and markets.

Afreximbank, founded in 1993, finances and promotes intra- and extra-African trade. It provides financing to public entities, African private and institutional investors, and non-African companies with commercial activities on the continent. As of December 2024, the bank’s total assets and guarantees stood at about $40.1 billion, while shareholder equity reached $7.2 billion.

Walid Kéfi