African corporate bond issuance surges to $13.3bn in 2026, fastest in five years

In the first three quarters of 2026, African-linked corporate issuers generated $13.3bn from hard-currency bond sales, marking the fastest issuance rate in five years, Bank of America said. The amount includes $3.25bn of private placements and reflects participation from issuers in 11 African nations, up from eight in 2021. Major transactions involved First Quantum Minerals' $1.5bn bond, Azule Energy's $1.5bn issuance, and Sasol's $750mn dollar bonds, most of which were directed toward refinancing existing obligations rather than new investment.

Credit metrics are improving, with rating upgrades outnumbering downgrades and CCC-rated corporate debt dropping to roughly $2.1bn, while no payment defaults have been recorded since 2020. The bank projects annual African corporate bond issuance of $8bn-$12bn, though rising global rates may push borrowers toward local financing or alternative sources. Upcoming maturities are set to rise sharply, with $2.2bn due in 2027 and nearly $7bn slated for 2028, highlighting sovereign credit risk as a key concern.