The African Development Bank (AfDB) has successfully launched a new USD 2 billion 5-year Social Benchmark transaction, priced at a reoffer yield of 3.574% and a spread of 11.27 basis points over the 5-year US Treasury. The bond, rated Aaa by Moody s, AAA by S&P, and AAA by Fitch, was launched on September 10, 2024, and is set to mature on September 18, 2029. The transaction, which was part of AfDB s Sustainable Bond framework, received strong investor demand, with the final order book closing in excess of USD 3.7 billion. The bond s coupon rate is fixed at 3.500%, paid semi-annually, and the reoffer price is 99.664%. The transaction was jointly led by BofA Securities, BMO Capital Markets, Citi, Goldman Sachs International, and Morgan Stanley. The geographical distribution of investors shows a diversified base, with the Americas accounting for 47%, EMEA at 32%, and Asia at 21%. The order book was predominantly allocated to Central Banks & Official Institutions (56%), Bank Treasuries (29%), and Fund Managers/Asset Managers/Hedge Funds (15%). This transaction marks AfDB s second USD Global Benchmark in 2024, following a 3-year USD 2 billion social benchmark transaction issued in January. The new 5-year USD transaction extends AfDB s outstanding curve and demonstrates the issuer s commitment to maintaining liquid lines at key benchmark maturities. The strong participation from ESG investors, representing 25% of the final order book, highlights investors confidence in AfDB s Sustainable Bond Framework and development mandate.
Source: businessghana.comPublished on 2024-09-14
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