ABIDJAN – The African Development Bank (AfDB) has launched and priced a $2 billion (R29bn) three-year Global Benchmark bond due September 16, 2022, its first US dollar benchmark of the year.
Launched on September 11, the bond issue is the Bank’s second Global Benchmark of 2019, following a €1bn (R16bn) 10-year priced in March 2019.
With this transaction, the Bank has now raised $4.4bn in 2019 to date and executed 61 percent of its borrowing program for the year. The transaction received strong support from investors globally, with order books reaching $2.8bn and 53 investors participating.
Group Treasurer, African Development Bank Hassatou Diop N’Sele said: “We are delighted with this successful dollar Global Benchmark, and particularly pleased by both the very high quality of the order book and the solid participation of African Central Banks. The African Development Bank achieved its tightest ever spread to US Treasuries, and we are grateful to our investors across the world for this outcome, and the financing it will bring to the African continent.”
The high quality of the order book is illustrated by the strong participation of Central Banks and Official Institutions, taking 64 percent of the allocations.