On Tuesday 13th January, the African Development Bank ("AfDB"), rated Aaa/AAA/AAA (Moody's/S&P/Fitch) successfully priced a new AUD 1 billion 5-Year Social Kangaroo Benchmark at ASW+40bps, equivalent to ACGB Dec-30 + 40.7bps. The Bank prepared well ahead to be able to react swiftly to the constructive market tone and clear issuance window to launch the first new AUD benchmark since February 2025, an AUD 5-Year Benchmark Social Bond.

Transaction Execution

• The Bank announced a new AUD 5-Year Social Benchmark just after 09.30 AEDT on Monday 12th January 2026. Guidance of ASW+40bps s/q area was communicated alongside the mandate.

• The transaction enjoyed a very strong reception from the outset, with orderbooks in excess of AUD 1.67 billion (incl. AUD 300m JLM) by the time of the first update at 17.25 AEDT on Monday evening. Guidance remained unchanged at ASW+40bps s/q area at this juncture. Momentum continued throughout the European session, with demand growing in excess of AUD 2.42 billion (incl. AUD 300m JLM) by the time of the second update just before 08.55 AEDT on Tuesday morning. It was announced that the deal size would be AUD750 million (minimum) and it was communicated that books were to close at 12.30 AEDT. The final spread was set at ASW+40bps s/q by the time of the third update just after 13.00 AEDT. AfDB's largest ever AUD orderbook closed in excess of AUD 2.62 billion (incl. AUD300m JLM), allowing AfDB to comfortably upsize the transaction to AUD 1 billion, representing their largest ever AUD benchmark.

• In terms of distribution by investor type, Banks / Private Banks were the largest investor component, taking 40% of final allocations, supported by strong participation from Asset Managers / Insurance (32%), Hedge Funds / Trading / Other (22%) and Central Banks / Official Institutions (6%). In terms of geography, the transaction was well-placed amongst Australia (49%), Asia ex. Australia (44%), EMEA (6%) and US accounts (1%). The broad and global distribution of this transaction is once again testament to AfDB's unwavering support within the global investor community.

• This is the fourth Social Bond issued by the AfDB in the AUD market and the funds raised through this transaction will be used to finance eligible social projects in accordance with the African Development Bank's Social Bond Program, with the goal to promote sustainable economic development and social progress in Africa. Eligible projects financed with proceeds of this new AUD-denominated Social Bond are expected to lead to poverty reduction and job creation.

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