AfDB raises over €1.7 billion in latest bond issuance

18 Mar 2019, 12:00 am
Financial Nigeria

Summary

AfDB said the bond offering is its first Euro-denominated global benchmark transaction of the year, aimed at combating poverty and improving lives in Africa.

Africa Development Bank President, Akinwumi Adesina

The African Development Bank said it raised over €1.7 billion in its oversubscribed €1 billion bond issuance. In a statement released on Friday, the Abidjan-based multilateral lender said the bond offering is its first Euro-denominated global benchmark transaction of the year, aimed at combating poverty and improving lives in Africa.  

The €1 billion 10-year benchmark transaction – which was issued on March 15th – offers a coupon of 0.50 percent and a re-offer yield of 0.557 percent with a March 21st, 2029 matury date.

“We have been focused on building a strong investor base and a solid curve in Euro since our first foray in that market three years ago, and our approach has been met with success," said Hassatou N’Sele, AfDB's Treasurer. "We offer rarity, triple-A strength, performance, and a mandate to combat poverty and improve lives on the African continent.”

Due to the bank's top rating – Aaa/AAA/AAA – by Moody’s, S&P and Fitch, investors for the bond issuance included central banks and financial institutions (41 percent), Asset Manager (30 percent), banks (23 percent) and insurance companies (6 percent). Investors who participated were from various regions, including United Kingdom, Ireland, France, Asia, the Americas, Germany and Italy.

The Joint-lead Managers (JLM) were BNP Paribas, Bank of America Merrill Lynch, Goldman Sachs International and J.P. Morgan Chase & Co. 


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