On Wednesday 14th January, the African Development Bank ("AfDB"), rated Aaa/AAA/AAA (Moody's/S&P/Fitch) successfully priced a new USD 1 billion 10-year Global Benchmark due January 2036, the Bank's first USD benchmark of the year. This transaction is the Bank's second 10-year USD benchmark following the inaugural USD 1 billion 10-year issued in June 2025.

At USD 6.4 billion, this transaction marks the Bank's largest-ever orderbook for a single-tranche issuance. The transaction garnered strong support from the global investor community, enabling the Bank to tighten pricing by 4bps from IPTs and achieve a final spread of 7.8bps versus USTs--4 bps tighter than its inaugural USD 10-year transaction in June 2025.

Distribution was well diversified across geographies with over 109 orders and 37 orders allocated. The issuance attracted high-quality investors, including Central Banks and Official Institutions (51%), Asset Managers (23.2%), Banks (20.9%) and other (4.9%) adding further diversification to the investor base.

The transaction for a USD 1 billion will not grow 10-year transaction was announced at 14.00 UKT post-US CPI release on Tuesday 13th January, with IPTs at SOFR MS+45bps area (equivalent to CT10+11.5bps). The transaction received strong interest from the outset. By 08.00 UKT the following morning, indications of interest stood at over USD 3.5 billion enabling the issuer to officially open books with initial price guidance 2bps tighter than IPTs at SOFR MS+43bps area. The orderbook continued to grow, and at 10.05 UKT the spread was set at SOFR MS+41bps, a further 2bps tighter with books in excess of USD 6.2 billion (including USD 200 million JLM interest).

Books were closed at 10.45 UKT in EMEA/Asia and 13.30 UKT in the US at USD 6.1 billion. The transaction was priced at 16.09 UKT with a re-offer yield of 4.214%, equivalent to a spread of 7.8bps vs UST 4% November 2035. The transaction highlights the Bank's continued ability to access the USD market effectively, capturing robust investor demand amid evolving rate expectations, while achieving efficient pricing and further broadening its diversified global investor base.

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