On Wednesday 3rd June 2026, the African Development Bank ("AfDB"), rated Aaa/AAA/AAA (Moody's/S&P/Fitch) successfully priced a new EUR 1.25 billion 7-year Social Benchmark due June 2033. This transaction marks the Bank's first EUR benchmark of the year and first 7-year EUR benchmark since 2022, extending its EUR curve.

The deal follows the Bank's USD 5-year global benchmark issued in March and brings its year-to-date funding to USD 10.1 billion, representing 83% of its 2026 borrowing programme. The transaction attracted strong demand from a high-quality investor base, with final orderbooks in excess of EUR 2.1 billion (including EUR 300 million of Joint-Lead Managers (JLM) interest).

Investor distribution was skewed towards Europe with investors from this region taking 81% of the allocation, followed by Middle East & Africa (8%), Asia (8%) and the Americas (3%). The allocation by investor type was led by Central Banks and Official Institutions (48%), followed by Banks (28%) and Asset Managers (24%). The successful outcome of this bond issuance highlights the Bank's strong Environment, Social and Governance (ESG) credentials, with the Social bond format continuing to resonate with sustainability-focused investors.

The mandate for the EUR 7-year Social Benchmark was announced at 11:20 UKT on Tuesday 2nd June. Orderbooks officially opened on Wednesday 3rd June at 07:50 UKT with initial price guidance at Midswaps+16 basis points (bps) area.

The transaction was met with solid and high-quality investor demand, with the orderbook exceeding EUR 2 billion (including EUR 225 million JLM interest) by 10:10 UKT. At this stage, the spread was revised 2bps tighter and set at Midswaps+14bps, while the issue size was set shortly thereafter at EUR 1.25 billion.

Final orderbooks closed in excess of EUR 2.1 billion (including EUR 300 million JLM interest) at 10:45 UKT, demonstrating a strong and broad-based participation across global investors. The transaction priced at 13:46 UKT at Midswaps+14bps, equivalent to a spread of 23.6bps vs the German Bund benchmark, achieving the tightest spread vs Bund in the issuer's history.

The African Development Bank's latest social bond underscores its strong market standing and ESG leadership, attracting robust investor demand while supporting eligible social projects under its Sustainable Bond Framework.

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