AfDB launches $2 billion 5 - year social benchmark transaction – New Business
The African Development Bank (AfDB) has successfully launched a new $2 billion 5-year Social Benchmark transaction, marking its second USD Global Benchmark in 2024. The bond, rated Aaa by Moody s, AAA by S&P, and AAA by Fitch, was issued on September 10, 2024, with a coupon of 3.500% and a reoffer yield of 3.574%. The transaction, which pays a spread of 11.27 basis points over the 5-year US Treasury, closed with a final order book exceeding USD 3.7 billion, including USD 150 million from Joint Lead Managers (JLMs). The launch of the bond coincided with the AfDB s 60th anniversary, demonstrating the issuer s commitment to maintaining liquid lines at key benchmark maturities. The strong participation from ESG investors, who accounted for 25% of the final order book, highlights investors confidence in the Bank s Sustainable Bond Framework and development mandate. The initial Pricing Thoughts (IPTs) for the bond were released on September 9, 2024, at SOFR Midswaps + 42 basis points. Investor demand was robust, with overnight Indications of Interest (IoIs) exceeding USD 2.5 billion, including USD 150 million from JLMs. The order book continued to grow throughout the morning, with demand approaching USD 3.3 billion by 10:19 UKT. The issuer set the size at USD 2 billion, as the final order book closed in excess of USD 3.7 billion. The transaction officially priced at SOFR Midswaps + 41 basis points, equivalent to a reoffer yield of 3.574% and a spread of 11.27 basis points over the 5-year US Treasury. This successful launch of the 5-year USD Social Benchmark transaction reflects investors confidence in AfDB s AAA credit rating and its commitment to sust
Source: newbusinessethiopia.comPublished on 2024-09-12
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