African Export Import Bank (Afreximbank) has strengthened its position in Japan’s capital markets after securing JPY (Japanese Yen) 81.8 billion, approximately $527 million, in its second Samurai bond issuance, surpassing the size of its 2024 debut and reinforcing growing Japanese investor confidence in the bank’s credit profile and Africa focused mandate.
The pan African multilateral financial institution priced a JPY 45.8 billion three year Regular Samurai tranche on November 18, 2025, after extensive investor engagements during the Tokyo International Conference on African Development (TICAD9). Afreximbank’s activities included non deal roadshows across Tokyo, Kanazawa, Kyoto, Shiga, and Osaka, a global investor call, and a two day process testing appetite across multiple maturities.
With market expectations of a Bank of Japan interest rate hike, demand focused on shorter tenors, resulting in a three year tranche during official marketing. The execution attracted orders from more than 100 institutional and retail investors, demonstrating renewed Japanese confidence in the bank’s credit and growing presence in yen capital markets.
The tranche attracted strong participation from asset managers accounting for 22.3 percent, life insurers contributing 15.3 percent, regional corporates, and high net worth individuals representing 39.7 percent. The diversified investor base reflects broadening appeal for Afreximbank securities among Japanese market participants.
Concurrently, Afreximbank priced a JPY 36 billion three year Retail Samurai bond, more than doubling its inaugural retail issuance of JPY 14.1 billion completed in November 2024. The 2025 retail offering marks the first Retail Samurai bond issued in Japan in 2025, underscoring Afreximbank’s pioneering role in accessing retail investor capital.
Following amendment to Afreximbank’s shelf registration on November 7, 2025, SMBC (Sumitomo Mitsui Banking Corporation) Nikko Securities conducted an extensive seven business day demand survey through its nationwide branch network, followed by a six business day bond offering period. SMBC Nikko Securities acted as sole lead manager and bookrunner for both tranches.
The offering benefited from strong visibility supported by Afreximbank’s investor engagement across the country, including the bank’s participation at TICAD9, where Afreximbank hosted the Africa Finance Seminar to introduce its mandate in Africa and credit profile to key Japanese institutional investors.
Chandi Mwenebungu, Afreximbank’s Treasury and Markets Managing Director and Group Treasurer, said the transaction marks a deepening relationship with Japanese investors. He noted that increased demand across both tranches reflects sustained confidence in the bank’s credit and mission.
We are pleased with the successful completion of our second Samurai bond transactions, which marked a significant increase from our inaugural Retail Samurai bond in 2024, and which reflect the growing depth of our relationship with Japanese investors, Mwenebungu stated. He added that Afreximbank remains committed to strengthening its presence in the Samurai market through regular investor activities and continued collaboration with Japanese partners.
Samurai bonds refer to yen denominated bonds issued in Japan by non Japanese entities. They are sold to Japanese investors under Japan’s market rules and provide foreign issuers access to deep pools of yen liquidity while offering Japanese investors diversified investment opportunities.
The successful issuance supports Afreximbank’s strategy to diversify funding sources and mobilize long term capital for trade finance and development projects across Africa. The bank has been deploying innovative structures to deliver financing solutions supporting transformation of Africa’s trade structure, accelerating industrialization and intra regional trade.
Afreximbank completed its inaugural Samurai bond issuance in November 2024, raising JPY 81.3 billion, approximately $530 million, comprising JPY 67.2 billion in five regular tranches and JPY 14.1 billion in a three year Retail Samurai bond. That debut transaction attracted strong participation from diverse Japanese institutional investors, establishing the bank’s credibility in Japan’s bond markets.
The 2025 issuance exceeds the debut both in total size and particularly in retail participation, which more than doubled year over year. This growth demonstrates Afreximbank’s expanding appeal among individual Japanese investors seeking exposure to African development finance while earning yen denominated returns.
Japan Credit Rating Agency (JCR) affirmed Afreximbank’s A minus issuer credit rating with stable outlook in August 2025. The rating reflects JCR’s assessment of Afreximbank’s strong strategic positioning, robust risk management framework, consistent profitability, prudent liquidity policies, and resilient capital base.
JCR noted the bank’s important role in supporting trade finance and economic development across Africa and the Caribbean. The rating agency stated it expects Afreximbank’s rating to remain stable over the next 12 to 18 months despite external macroeconomic challenges and potential pressures in its operating environment.
Afreximbank also holds ratings from other agencies including Baa1 from Moody’s Investors Service, BBB minus from Fitch Ratings, A from Global Credit Rating (GCR), and AAA from China Chengxin International Credit Rating (CCXI). The divergence in ratings illustrates contrasting evaluation methodologies between Western, Japanese, and Chinese rating agencies.
The bank reported total assets and contingencies rising 6.98 percent to $42.9 billion as of September 30, 2025, up from $40.1 billion at December 31, 2024. Afreximbank has been expanding its balance sheet while maintaining investment grade credit ratings across multiple agencies.
With assets exceeding $40 billion and an active strategy of diversifying funding sources, Afreximbank continues expanding its presence in international bond markets. The bank has accessed funding in multiple currencies including United States dollars, euros, Chinese yuan, and now increasingly Japanese yen through its Samurai bond program.
Afreximbank is headquartered in Cairo, Egypt, with regional offices across Africa and representative offices in major financial centers. The bank operates as a pan African multilateral financial institution mandated to finance and promote intra and extra African trade. For over 30 years, the institution has been deploying innovative structures to deliver financing solutions.
The bank is a stalwart supporter of the African Continental Free Trade Area (AfCFTA), having launched the Pan African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform underpinning AfCFTA implementation. Working with the AfCFTA Secretariat and the AU, Afreximbank has established a $10 billion Adjustment Fund to support countries participating in the continental trade agreement.
TICAD9, held in Tokyo in 2025, provided an opportune platform for Afreximbank to deepen relationships with Japanese investors and policymakers. The conference series, co organized by Japan, the AU, the United Nations, and the World Bank, focuses on African development through public private partnerships.
Japan has maintained long standing development cooperation with African countries through TICAD and bilateral programs. Japanese institutional investors, including life insurance companies and pension funds, manage substantial assets and seek diversification opportunities beyond domestic markets where yields remain constrained by accommodative monetary policy.
The successful Samurai bond issuances demonstrate that Japanese investors view Afreximbank as a credible vehicle for gaining exposure to African trade finance while maintaining investment grade credit quality. As the Bank of Japan gradually normalizes monetary policy after years of ultra loose conditions, yen bond markets are adjusting to changing interest rate dynamics.
The concentration of demand in shorter maturities for the Regular tranche reflects investor positioning ahead of potential rate increases. Three year bonds offered attractive yields relative to longer dated securities while limiting interest rate risk as market participants assess the Bank of Japan’s policy trajectory.
For retail investors participating in the Retail Samurai tranche, Afreximbank bonds provide an opportunity to support African development while earning competitive yen returns. SMBC Nikko’s extensive branch network enabled broad distribution reaching individual investors across Japan’s regions beyond major financial centers.
The shelf registration amendment expanded Afreximbank’s capacity to issue additional yen bonds without requiring new regulatory approvals for each transaction. This framework facilitates opportunistic market access when conditions favor issuance, providing flexibility to optimize funding costs and timing.
Looking ahead, Afreximbank’s commitment to regular engagement in Japan’s capital markets signals long term strategic interest rather than opportunistic one off transactions. Building sustained relationships with Japanese investors requires consistent presence, transparent communication, and track record of meeting obligations.
The successful second issuance establishes Afreximbank as a repeat issuer in Samurai markets, an important milestone for building investor familiarity and comfort. Repeat issuers typically achieve better pricing and execution as investors develop deeper understanding of credit fundamentals and confidence in the issuer’s commitment to the market.
Afreximbank’s growing yen funding base complements its diversified liability structure spanning multiple currencies and investor geographies. This diversification reduces concentration risk, provides access to different investor bases with varying risk appetites, and creates alternatives if specific markets become less favorable.
The proceeds from the Samurai bonds will support Afreximbank’s mandate to finance trade transactions, provide export credit guarantees, promote African exports, facilitate project and infrastructure development, and support industrialization across the continent. Trade finance remains a critical need in Africa where gaps in available financing constrain commerce.
The successful completion of the second Samurai bond transaction reinforces Afreximbank’s position as one of Africa’s leading multilateral development finance institutions with strong access to international capital markets. This funding capability enables the bank to scale operations and expand support for African trade and economic development.
