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The West African Development Bank (BOAD) announced today that it has reached a new milestone by successfully completing a historic bond issuance of EUR 1 billion with a 15-year maturity on the international capital market.

The deal drew strong investor interest, generating a record EUR 2.7 billion order book. This robust appetite enabled a 35-basis point spread tightening, resulting in a high-yield coupon of 6.25%.

“The success of this issuance reflects investors’ high level of confidence in BOAD’s strong credit rating and the growth opportunities of the West African Economic and Monetary Union (WAEMU),” said BOAD in a statement sent to Financial Nigeria. 

The statement said the issuance is further illustrated by the high quality and diversity of the final allocation: a strong European presence, with investors from the United Kingdom and Ireland accounting for 49% of the allocation, followed by the German-speaking countries of Central Europe – Germany, Austria, and Switzerland, known as the DACH region – (23%), the United States (13%), the rest of Europe (10%), the Middle East (4%) and Asia (1%). 

As per investor type, asset managers represented 74% of the allocation, hedge funds 14%, followed by banks and private banks 7%, pension funds/insurers 3%, and central banks 1%.

BOAD said the deal represents an important milestone for Africa’s multilateral development banks (MDBs), as it constitutes the longest euro-denominated benchmark bond ever issued by an African MDB.

According to the statement, the proceeds of the bond will be allocated to priority high-impact projects across WAEMU. It added that the exceptional 15-year maturity is well aligned with the nature of these investments – essential for the long-term development of member economies – and fully consistent with the bank’s mission and the goals of its strategic plan.

“This deal is more than a financial achievement; it is a clear recognition of BOAD’s creditworthiness and business model,” Serge Ekue, President of BOAD, comments. “Above all, it strengthens our resolve to extend what can be achieved in a challenging environment. This historic EUR 1 billion bond with a 15-year maturity, further strengthens our capacity to finance the sustainable development of our member countries.”

Ekue acknowledged the crucial role of the banking syndicate – BNP, J.P. Morgan, Natixis and SMBC – as well as the legal advisers, in making the deal successful.

The West African Development Bank is the common development finance institution of the member countries of the West African Monetary Union (WAMU). It is an international public institution whose purpose, as provided under Article 2 of its Articles of Association, is to promote the balanced development of its member countries and foster economic integration within West Africa by financing priority development projects.