Ashurst advises Africa Finance Corporation on guaranteed US$500m Egypt Samurai bond issuance

Global law firm Ashurst has advised Africa Finance Corporation, the leading African infrastructure financier and solutions provider, on its role as re-guarantor to the Arab Republic of Egypt for its private placement offering of 75 billion Japanese yen (US$500 million equivalent) five year Samurai bonds to finance electricity infrastructure for agricultural projects.

This landmark bond issuance was guaranteed by Sumitomo Mitsui Banking Corporation on the basis of a re-guarantee provided by AFC. Proceeds of the issuance will be used to finance the development of electricity supply infrastructure for the Government of Egypt’s largest agricultural projects being constructed on more than one million acres of land on the northwest coast of Egypt. These projects are expected to contribute to Egypt’s food security and increase agricultural output by 15%.

Commenting on the transaction, Samaila Zubairu, President and CEO of Africa Finance Corporation, said, “We are proud to have acted as a reliable bridge connecting Egypt to global capital markets, proceeds of which will finance rapid industrialisation and move the country away from exporting agricultural raw materials towards value addition and import substitution. With the right investment in infrastructure, Africa can become instrumental to the global solution to food insecurity.”

Partner Tom Longmuir said, "This successful issuance demonstrates the keystone role of development finance institutions in ensuring competitive access to financing for their African member states, including by deploying innovative guarantee products to mobilise private finance. The transaction played to our strengths in structured multilateral credit support as well as our market knowledge of Egypt, and we are delighted for the AFC, Government of Egypt and SMBC teams."

The multi-jurisdictional Ashurst team was led by partner Tom Longmuir and comprised senior associates Joe Newton and Akemi Kishimoto, as well as associate Rohan Last and trainee solicitor Adéla Mackie.

Ashurst is a longstanding legal adviser to AFC and, led by relationship partner Matthew Wood, has played a key role in advising AFC on many of its international borrowings over the past five years as its institutional footprint and balance sheet have grown considerably.