By Radarr Africa Business Desk
October 26 (Radarr Africa) – The African Development Bank (AfDB) has raised $2.5 billion through a three-year global benchmark bond, drawing a final order book of $4.8 billion, according to a statement posted on the bank’s website and reported by Nairametrics.
The bond carries a fixed coupon of 4.875 per cent, paid semi-annually, and matures on January 18, 2030. It was announced on Tuesday, October 20, priced on Wednesday, October 21, and is due to settle on November 2, the bank said.
The notes were priced at 99.837 per cent, giving a re-offer yield of 4.933 per cent. The final spread was 28 basis points over SOFR mid-swaps, two basis points tighter than the initial guidance of about 30 basis points. Against the US Treasury maturing on October 15, 2029, the re-offer spread was 8.7 basis points, the AfDB statement showed. Initial price thoughts had been about 10.9 basis points over the Treasury.
Demand built quickly. Indications of interest exceeded $3.7 billion by 8:10 a.m. UK time on the day the order book opened. The final book reached $4.8 billion, including $50 million of interest from the joint lead managers. The AfDB page reported more than 80 orders, of which 71 were allocated.
The distribution by region was 54 per cent to Europe, the Middle East and Africa, 40 per cent to the Americas and 6 per cent to Asia. By investor type, banks took 48 per cent, central banks and official institutions 39 per cent, and asset managers 13 per cent.
The joint lead managers were Bank of Montreal, BofA Securities, BNP Paribas, Credit Agricole CIB and TD Securities, according to the bank. The notes are rated Aaa by Moody’s and AAA by S&P, Fitch and JCR, all with stable outlooks.
The AfDB statement described the transaction as the bank’s third US dollar benchmark of 2026. It follows a $1 billion 10-year bond issued in January and a $2 billion five-year bond issued in February. Nairametrics added that the bank also issued a £1 billion three-year sterling bond due January 2029 in January.
Nairametrics noted that Fitch affirmed the bank’s long-term issuer default rating at AAA with a stable outlook in June 2025.
Neither the AfDB statement nor the Nairametrics report named bank officials or gave comment from investors on the transaction, and neither said how the proceeds will be allocated. The AfDB statement lists the format as Global SEC Exempt.
The notes carry the ISIN US00828EFQ70, the bank’s statement showed.
Separately, Nairametrics reported that Nigeria and the AfDB have agreed to review the country’s $6.2 billion project portfolio with the bank. The outlet did not give further details in the report reviewed by Radarr Africa.
Reuters, through Business Recorder, reported on Monday that the 10-year US Treasury yield was 4.97 per cent, below an early-month peak of 5.36 per cent, and that markets price roughly an 80 per cent chance of a US Federal Reserve rate rise in December.
