The African Development Bank ("AfDB"), rated Aaa (Moody's) / AAA (S&P) / AAA (Fitch) / AAA (Japan Credit Rating), has launched and priced a new GBP 500 million 3-year Benchmark transaction due February 1st, 2028. The bond pays a coupon of 4.625% with a re-offer yield of 4.704% and a reoffer price of 99.778%.
The new 3-year GBP transaction marks AfDB's first Benchmark issuance in 2025 and successful return to the GBP market since 2023.
Bond Summary Terms
| Key | Details |
|---|---|
| Ratings | Aaa/AAA/AAA (all stable) |
| Launch date | 14th January 2025 |
| Settlement date | 21st January 2025 |
| Maturity date | 1st February 2028 |
| Size | GBP 500,000,000 |
| Coupon | 4.625%, Fixed, Annual, ACT/ACT ICMA (long first coupon) |
| Re-offer spread vs SONIA MS | +34bps |
| UKT Benchmark | UKT 0.125% Jan-28 |
| Re-offer spread vs UKT | +35.5bps |
| Re-offer price / yield | 99.778% / 4.704% yield ann. / 4.650% yield s.a. |
| Format | Global (SEC Exempt) |
| ISIN | XS2982069788 |
| Joint lead managers | BofA Securities, BMO Capital Markets, Nomura, RBC Capital Markets |
Deal Overview
- On Tuesday, 14th January 2025, at 09.50 CET, AfDB announced a mandate for a new GBP 3-year benchmark with guidance at SONIA MS+34bps area
- At 11.39 CET, with books above £425 million (excluding JLM interest), the issuer set the spread at SONIA MS+34bps with books scheduled to close at 12:45 CET
- Final books closed in excess of £535m (including £25m JLM interest), and the transaction was later priced at 14.10 CET, with a reoffer price of 99.778%, reoffer yield of 4.704%, and an equivalent UK Treasury spread of + 35.5bps
- In terms of investor types, the transaction received support from high-quality investors led by the Bank Treasury community. 90% of the orderbook was allocated to Banks, 6% to Asset Managers, and 4% to Central Banks / Official Institutions
- In terms of geographical distribution, the UK represented 98% of the transaction with 2% to EMEA
- This transaction marks AfDB's successful return to the GBP market since 2023, extending its GBP curve with smooth execution and resulting in a high-quality order book
