African Development Bank launches global benchmark of $ 2.75 billion at 0.875 percent due July 22, 2026
The African Development Bank, rated Aaa / AAA / AAA / AAA (Moody’s / S & P / Fitch / Japan Credit Rating, all stable), launched and assessed a 5-year Global Benchmark bond of $ 2.75 billion due 22 July 2026, his second of years.
With this latest issue, the African Development Bank is pursuing its financing strategy of issuing large liquid benchmark transactions and adding another ongoing benchmark on the 5-year maturity while lengthening the USD outstanding curve by the bank. With the final order book having closed at more than $ 4.2 billion and the participation of 82 investors, the Bank has set the transaction amount at $ 2.75 billion. The issue has attracted the interest of leading investors, with particularly strong demand from central banks and official institutions.
The Bank’s mandate for a 5-year USD global benchmark was announced on Wednesday, July 14 at 1:00 p.m. London time, with Initial Price Thoughts (“IPT”) published in the mid-swaps + area. 3 basis points (bps).
The transaction generated great interest from the start and prompted indications of record interest, exceeding $ 2.9 billion, when the books opened Thursday at 8:00 a.m. London time. This enabled the Bank to tighten its guidance by 1bp in the mid-swaps +2bp zone.
Demand continued to grow through the European morning and the end of the Asian session, with investor interest surpassing $ 3.9 billion at 10:50 a.m. London time, allowing the Bank to tighten further and set the spread at mid-swaps + 1bp.
The high quality of the order book and the limited price sensitivity allowed the Bank to tighten prices by 2 basis points throughout the execution process and achieve the tightest spread against the bonds of the 5-year supranational or agency US treasury in 2021.
“We are pleased with the results of this global benchmark, in particular the strong and ever-growing interest from high-quality investors. This is one of two bonds in the supranational, sovereign and agency asset class priced below US Treasuries + 10bp in the 5-year maturity, clearly an achievement that will benefit our countries. regional members, ”said Hassatou Diop N’Sele, Group Treasurer, African Development Bank.
Distribution statistics to investors:
The transaction is a further demonstration of the African Development Bank’s extremely large and high-quality investor base, with this obligation well distributed among different geographies and types of investors.
African Development Bank (“AfDB”)
Aaa / AAA / AAA / AAA (all stable)
$ 2.75 billion
July 15, 2021
July 22, 2021 (T + 5)
July 22, 2026
0.875% semi-annual, 30/360, unadjusted following
Spread at mid-swaps:
Distribute to the benchmark:
UST 0.875% June 30, 2026 + 9.4 bps
Return of the re-offer:
Bank of America, Citi, Deutsche Bank, Nomura and Wells Fargo Securities
Castle Oak Titles
Contact: [email protected]