AFDB issues $2 billion five-year global benchmark bond

A $2 billion, five-year Global Benchmark bond with a maturity date of March 14, 2028, has been issued by the African Development Bank.

The bond was the continental bank's first of the year, according to a statement it released on Thursday. It was released on March 7, 2023.

The bond is a component of AfDB's funding strategy, which includes the issuance of sizable liquid benchmark transactions.

Part of the statement read, “The deal enjoyed good investor demand during the first afternoon and overnight with Indications of Interest reaching USD 2.1 billion by the time books officially opened on Tuesday 7, March 2023 at 07:57 London time.

“The orderbook continued to grow throughout the European morning, with investor demand equaling USD 3.5 billion by 10:28 London time, which allowed the spread to be tightened by 2bps and set at SOFR mid-swaps + 33bps. Shortly thereafter, at 12:54 London time, the high-quality orderbook allowed the transaction to be launched with a size of USD 2 billion, with Americas books set to go subject at 13:30 London time.”

The bank said that official institutions and central banks were interested in the matter.

Barclays, Crédit Agricole CIB, Deutsche Bank, J.P. Morgan, and TD Securities are among the bond's lead managers. CastleOak Securities serves as the co-lead manager.

In order to reduce poverty on the African continent, the AfDB aims to promote social and economic advancement in its member nations in the region.

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