Afreximbank issues first Panda bond, raises Sh39.1 billion in Chinese market
The African Export-Import Bank (Afreximbank) has raised Sh39.1 billion by selling its first-ever Panda bond in China, marking a major step in building stronger financial ties between Africa and China.
The issuance, completed on March 28, 2025, falls under Afreximbank’s 2025 Panda Bond Programme and involved a three-year bond worth RMB 2.2 billion, equivalent to $303 million (Sh39.1 billion), with a final coupon rate of 2.99 per cent.
The Bank’s successful entry into China’s Interbank Bond Market followed rigorous regulatory and approval processes for Panda bond issuances.
Afreximbank’s accomplishment sets a precedent for other African financial institutions looking to access Chinese capital markets to raise funds and diversify their investor bases.
Bank of China Limited acted as Lead Underwriter and Bookrunner. The Export-Import Bank of China and Industrial and Commercial Bank of China Limited served as Joint Lead Underwriters.
The transaction is the first-ever Panda bond issued by a pan-African multilateral financial institution and the second such bond by any African issuer, following Egypt’s debut Panda bond in 2022.
Chandi Mwenebungu, Afreximbank Treasurer and Managing Director in charge of the Treasury and Markets Division, said the closing of the landmark transaction demonstrated the Bank’s commitment to strategic diversification and highlighted the credibility it enjoys in global financial markets.
“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,” Mwenebungu said.
“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.”
Mwenebungu added that the bond addressed key goals within the Bank’s liability management strategy, including diversification by financial instrument, investor geography, type, and tenor. He also reiterated Afreximbank’s commitment to using innovative financial solutions to close funding gaps and support growth across the continent.
Afreximbank is a pan-African multilateral financial institution with a mandate to promote and finance intra-African and extra-African trade.
For more than three decades, the Bank has implemented innovative financing models that support the structural transformation of African trade, boost industrialisation, and strengthen regional integration to drive the continent’s economic expansion.
The issuance, completed on March 28, 2025, falls under Afreximbank’s 2025 Panda Bond Programme and involved a three-year bond worth RMB 2.2 billion, equivalent to $303 million (Sh39.1 billion), with a final coupon rate of 2.99 per cent.
The Bank’s successful entry into China’s Interbank Bond Market followed rigorous regulatory and approval processes for Panda bond issuances.
Afreximbank’s accomplishment sets a precedent for other African financial institutions looking to access Chinese capital markets to raise funds and diversify their investor bases.
Bank of China Limited acted as Lead Underwriter and Bookrunner. The Export-Import Bank of China and Industrial and Commercial Bank of China Limited served as Joint Lead Underwriters.
The transaction is the first-ever Panda bond issued by a pan-African multilateral financial institution and the second such bond by any African issuer, following Egypt’s debut Panda bond in 2022.
Chandi Mwenebungu, Afreximbank Treasurer and Managing Director in charge of the Treasury and Markets Division, said the closing of the landmark transaction demonstrated the Bank’s commitment to strategic diversification and highlighted the credibility it enjoys in global financial markets.
“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,” Mwenebungu said.
“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.”
Mwenebungu added that the bond addressed key goals within the Bank’s liability management strategy, including diversification by financial instrument, investor geography, type, and tenor. He also reiterated Afreximbank’s commitment to using innovative financial solutions to close funding gaps and support growth across the continent.
Afreximbank is a pan-African multilateral financial institution with a mandate to promote and finance intra-African and extra-African trade.
For more than three decades, the Bank has implemented innovative financing models that support the structural transformation of African trade, boost industrialisation, and strengthen regional integration to drive the continent’s economic expansion.
China
Afreximbank
Panda bond
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