Digital Bond Issuance: A New Frontier for Africa's Development

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In a groundbreaking move, Africa Finance Corporation has issued a CHF 350 million digital bond via SIX, marking a significant milestone in the continent's financial development.

TL;DR
• Africa Finance Corporation issued a CHF 350 million digital bond via SIX using the SDX platform.
• This is the first digital bond issuance by an African institution via a CSD and exchange.
• The bond carries a coupon of 1.4925% and is one of the larger digital bonds on the platform.

Summary
Africa Finance Corporation (AFC) launched a CHF 350 million digital bond on the SIX Digital Exchange (SDX), marking the first African institution to issue a digital bond through a central securities depository and exchange. The five‑year instrument offers a 1.4925% coupon and joins a growing list of supranational digital bonds, following UBS’s CHF 375 million issuance in 2022.
• Leverage regulated digital platforms to diversify funding sources and reduce reliance on traditional markets.
• Integrate digital bond issuance with broader capital‑market strategies to support long‑term development goals.
• Ensure transparent communication of technical details to maintain investor confidence and regulatory compliance.
• Align digital asset strategies with ongoing CBDC pilots to future‑proof infrastructure.
• Conduct regular audits of digital issuance processes to detect and mitigate emerging risks.

The SDX platform, now part of SIX SIS after a FINMA‑approved merger, has pioneered regulated digital exchanges and hosted live wholesale CBDC transactions. AFC’s issuance follows a brief pause in digital bond activity, with the last SDX issue being a KfW bond in June 2025. The move signals AFC’s commitment to innovation while strengthening its funding base for African development.

AFC’s Executive Board Member Banji Fehintola emphasized that the digital format is a strategic signal rather than an end in itself. By adopting digital bonds, AFC positions itself at the forefront of capital‑market innovation, enabling more efficient capital allocation and broader investor participation.

The transaction was structured by Commerzbank AG as Technical Lead and Deutsche Bank, illustrating the importance of experienced financial partners in navigating complex digital issuance frameworks. This collaboration ensures robust technical execution and adherence to evolving regulatory standards.

As Africa continues to innovate in the capital markets, what does this mean for the future of digital finance on the continent?