Agence Ecofin TikTok Agence Ecofin Youtube Agence WhatsApp


African Development Bank launches USD 2 billion 4.375% Global Benchmark due March 14, 2028

Friday, 10 March 2023 09:30
African Development Bank launches USD 2 billion 4.375% Global Benchmark due March 14, 2028

( AfDB) - The African Development Bank, rated Aaa/AAA/AAA/AAA (Moody’s/S&P/Fitch/Japan Credit Rating, all stable), has launched and priced a USD 2 billion 5-year Global Benchmark bond due March 14, 2028, its first of the year. The bond was issued on 7 March.

With this issue, the African Development Bank continues to carry out its funding strategy of issuing large liquid benchmark transactions and adds another on-the-run reference in the 5-year maturity while extending its outstanding USD curve. With the final orderbook closing in excess of USD 3.5 billion and 95 investors participating, the African Development Bank set the size of the transaction at USD 2 billion. The issue garnered interest from top quality investors with particularly good demand from Central Banks / Official Institutions.

The Bank’s mandate for a 5-year USD Global Benchmark was announced on Monday 6, March at 09:07 London time with Initial Pricing Thoughts (IPTs) released at mid-swaps plus 35bp (basis points) area at 12.34 London time.

The deal enjoyed good investor demand during the first afternoon and overnight with Indications of Interest (IoI) reaching USD 2.1 billion by the time books officially opened on Tuesday 7, March 2023 at 07:57 London time. The orderbook continued to grow throughout the European morning, with investor demand equaling USD 3.5 billion by 10:28 London time, which allowed the spread to be tightened by 2bps and set at SOFR mid-swaps + 33bps. Shortly thereafter, at 12:54 London time, the high quality orderbook allowed the transaction to be launched with a size of USD 2 billion, with Americas books set to go subject at 13:30 London time. The trade officially priced at 5.58 pm London time at SOFR mid-swaps plus 33bps, equivalent to a reoffer yield of 4.435% and a spread of 14.3bp vs the on-the-run 5-year US Treasury.

With the final orderbook closing in excess of USD 3.5 billion with more than 90 orders, the success of this 5-year transaction is a clear vote of confidence from investors in the Bank’s AAA credit.


Investor distribution statistics:


Transaction details:


African Development Bank (“AfDB”)

Issuer Rating:

Aaa / AAA / AAA (All Stable)



Pricing Date:

7 March 2023

Settlement Date:

14 March 2023

Maturity Date:

14 March 2028



Spread to mid-swaps:


Spread to benchmark:


Re-offer price:


Re-offer yield:


Lead Managers:

Barclays, Crédit Agricole CIB, Deutsche Bank, J.P. Morgan, TD Securities

Co-Lead Manager:

CastleOak Securities





logo BAD



Public Management

ECOFIN AGENCY offers a selection of articles translated from AGENCE ECOFIN. Founded in 2011, Agence Ecofin is a leader in Francophone Pan-African economic news, particularly in West and Central Africa. The agency publishes daily news on nine African economic sectors: Public Management, Finance, ICT, Agribusiness, Energy, Mining, Transport & Logistics, Communication, and Training.

Mediamania Sarl
Rue du Léman, 6
1201 Genève
Tél: +41 22 301 96 11


Benjamin FLAUX
Tél: +41 22 301 96 11
Mob: +41 78 699 13 72


Please publish modules in offcanvas position.