On Wednesday, September 14, 2016, the African Development Bank (AfDB), rated Aaa/AAA/AAA, priced a US $1 billion fixed rate US Dollar Global benchmark due 20 September 2019, the issuer's fourth global benchmark issue in 2016.

The transaction has a coupon of 1.125% and was priced at a spread of mid-swaps plus 9 basis points, the tightest 3-year benchmark pricing by the issuer since 2014, and equivalent to 26.2 basis points over the 0.875% UST due September 2019. Joint lead managers are Barclays, BofA Merrill Lynch, J.P. Morgan and TD Securities.

Execution timeline:

The mandate for a new US $1 billion "no-grow" 3-year benchmark was announced at 15:30, London time, on Tuesday, September 13, with books open for indications of interest (IOIs) with initial pricing thoughts in the context of mid-swaps plus 9 basis points (bps) area. Books were officially open at around 08.10 London time on Wednesday, September 14. IOIs stood in excess of US $600 million at this time, with official guidance unchanged at mid-swaps plus 9 bps area.

The orderbook continued to grow, and by mid-morning orders stood in excess of US $1 billion. The spread for the transaction was set just before 13:00 at a level of mid-swaps plus 9 basis points, with books closing just over an hour later, at 14:00.

The transaction was priced at 16:30 London time on Wednesday, September 14 at a spread of mid-swaps plus 9 basis points. This was equivalent at the time to 26.2 basis points over the 0.875% UST due September 2019.

The distribution by investor type was as follows: 67% with Central Banks and official institutions, 17% with fund managers, 11% with banks, and 5% with pension funds and corporates. In terms of geographical distribution, 46% of the bonds were placed with accounts in the Americas, 38% with Europe, 11% with Asia and 5% with the Middle East and Africa. The final orderbook stood in excess US $1.3 billion, with 40 investors participating.