The Africa Finance Corporation (AFC) has raised 350 million Swiss francs, or approximately $431 million, through its inaugural digital bond. This milestone makes them the first African institution to issue digital debt securities through a regulated exchange and central securities depository. The five-year bond with a 1.4925% coupon was issued on the SDX platform, an infrastructure operated by Switzerland’s SIX exchange.
Demand came almost entirely from within Switzerland, which absorbed 90% of the offering, while the remainder was taken up by international investors. Banks and financial institutions dominated the purchases with a 57% share, followed by asset managers at 37%, and hedge funds at 6%. Commerzbank AG acted as the technical lead, accompanied by the participation of Deutsche Bank AG’s London and Zurich branches.
This debt security marks AFC’s fourth Swiss franc-denominated bond, as well as its largest nominal value to date. Previously, the institution issued a 150 million Swiss franc green bond in 2020. With this latest issue, AFC’s funding record begins to rival UBS, which issued a 375 million Swiss franc digital bond in 2022.
Distributed System, Not Open Blockchain
Despite the digital label, the bond does not run on an open crypto network. The issuance solely utilizes distributed ledger technology or private DLT to record ownership transfers. This move aligns with the institutional adoption pattern of seeking blockchain-like efficiency without bearing the risks of anonymity on public networks.
All funds raised will be allocated for general funding needs and infrastructure projects across the African continent. AFC, which currently comprises 48 member countries, has invested up to $19 billion since 2007. The institution’s position is supported by an A rating with a positive outlook from S&P Global and an A3 rating with a stable outlook from Moody’s.
A Step Toward a Broader Institutional Market
This financial maneuver in Switzerland coincides with preparations by other traditional market players who are beginning to mature their tokenization efforts. In the United States, the Depository Trust & Clearing Corporation (DTCC) is preparing to launch limited production tokenization transactions in July 2026, before opening full services in October.
For the Web3 industry, the success of this issuance highlights the blurring line between legacy finance and new infrastructure. As digital record-keeping technology proves capable of facilitating the transfer of hundreds of millions of dollars within regulated pathways, the institutional shift toward tokenization is only a matter of time.
Sourced from crypto.news.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
