African Export-Import Bank (Afreximbank) announced it has successfully issued first Panda bond in the China Interbank Market, printing a three-year RMB 2.2 billion (about US$ 303 million equivalent) bond with a final coupon rate of 2.99 per cent.
Afreximbank, in a statement on Tuesday disclosed that the bond was issued under the Bank’s 2025 Panda Bond Programme.
The issuance, on 28 March, followed Afreximbank’s successful navigation of the rigorous regulatory and approval processes for Panda bond issuances, which has set a precedent for other African institutions wishing to explore similar avenues for raising capital and broadening their investor bases.
Bank of China Limited was the Lead Underwriter and Bookrunner, while The Export-Import Bank of China and Industrial and Commercial Bank of China Limited acted as Joint Lead Underwriters on the transaction seen as a historic milestone for being the first-ever Panda bond issued by a pan-African multilateral financial institution and the second Panda bond issuance by an African issuer, following Egypt’s successful Panda bond offering in 2022.
Highlighting the significance of the issuance, Chandi Mwenebungu, Afreximbank Treasurer and Managing Director in charge of the Treasury and Markets Division, said that the successful closing of the landmark transaction underscores Afreximbank’s determination to ensure strategic diversification in its funding mix and is a recognition of the Bank’s robust credit story and the strong investor support it enjoys from all key financial markets, including new jurisdictions.
“This issuance highlights Afreximbank’s commitment to diversifying its funding sources and to tapping into new pools of capital to drive economic development across Africa,” said Mwenebungu. “It further reinforces the long-term economic and trade partnership between China and Africa, fostering deeper financial integration and collaboration. In addition, it underscores the growing recognition of Africa’s economic potential among international investors as it paves the way for greater participation in Africa’s financial markets while bolstering the continent’s standing in the global investment landscape.”
Mr. Mwenebungu reiterated Afreximbank’s commitment to leveraging innovative financial solutions to bridge funding gaps and accelerate economic growth across Africa, noting that the transaction addressed key aspects of the Bank’s liability management objectives, including diversification of the liability book by instrument, geography, investor type and tenor.
