AfDB launches GBP 500 million 0.875% Global Benchmark bond

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The African Development Bank (AfDB), rated Aaa/AAA/AAA/AAA (Moody’s/S&P/Fitch/Japan Credit Rating, all stable), has launched and priced a highly successful GBP 500 million long 3-year Global Benchmark bond due 16 December 2024, its second pound sterling  benchmark transaction of the 2021 calendar year.


The mandate for a new GBP December 2024 Benchmark was announced on Monday, 25th  October 2021 around 9am London time, with orderbooks opening at Initial Price Guidance (“IPGs”) of UKT+28bps area.


The transaction was met with strong interest from the outset and by 10.30am London time, had attracted an orderbook in excess of GBP 220 million (excluding JLM interest) , at which point the spread was set at UKT+28bps.


The orderbook momentum continued to grow, and within the next 30 minutes, had surged in excess of GBP 350 million (excluding JLM interest).


With the final orderbook standing in excess of GBP 500 million (excluding JLM interest), the African Development Bank set the size of its latest benchmark at GBP 500 million. This marks the largest GBP benchmark in the 2024 maturity issued by a Supranational in the SSA space this calendar year.


The transaction was priced shortly after at 1.03pm London time, at UKT+28bps, offering an annual coupon of 0.875% equivalent to a re-offer yield of 0.918% and a re-offer price of 99.862%.


The transaction attracted 20 investors globally with investor demand evenly distributed across geographies. The new issue garnered interest from top quality investors with particularly good demand from Central Banks and Official Institutions 47%.


The strong outcome and attractive pricing enabled the African Development Bank to once again showcase its position as a leading triple-A SSA credit despite a very busy primary market.


Through its commitment to the pound sterling market, the African Development Bank continues to provide much needed liquidity for investors, further cementing its position as a frequent borrower.



Amaka E. Nliam/ AfDB