THE African Development Bank (AfDB) has unveiled a $2.75 billion 5-year Global Benchmark bond due 22 July 2026, making it the second of the year.
In a bid to resolve its latest issues, the bank has continued to carry out its funding strategy of issuing large liquid benchmark transactions, adding another on-the-run reference in the 5-year maturity while extending the Bank’s outstanding USD curve.
With the final order book closing in excess of $4.2 billion and 82 investors participating, the bank set the size of the transaction at $2.75 billion.
The issue garnered interest from top-quality investors, with particularly good demand from central banks and official institutions.
The AfDB’s mandate for a 5-year USD Global Benchmark was announced on Wednesday 14 July at 1.00pm London time with Initial Pricing Thoughts (“IPTs”) released at midswaps +3 basis points (bps) area.
The transaction was met with strong interest from the outset and resulted in record Indications of Interest (“IOIs”), in excess of $2.9 billion, by the time books opened on Thursday at 8.00am London time. This allowed the Bank to tighten guidance by 1bp to mid-swaps +2bps area.
Demand continued to grow during the European morning and late Asian session, with investor interest exceeding $3.9 billion by 10.50am London time, allowing the Bank to further tighten and set the spread at midswaps +1bp.
