• AfDB raises A$1 billion via five-year Kangaroo social bond

• AAA-rated bond priced at 4.6%, strong demand topped A$2.6 billion

• Proceeds to fund social projects across Africa

The African Development Bank (AfDB) raised 1 billion Australian dollars (about $673 million) on the Australian bond market by issuing a five-year “Kangaroo” social bond, the institution said on Tuesday, Jan. 20, 2026.

Rated AAA by Moody’s, S&P and Fitch, the bank sold the bond with a 4.6% coupon and a maturity date of Jan. 22, 2031. The deal priced at a margin of 40 basis points over the Australian swap rate (ASW), or 40.7 basis points over the December 2030 Australian government benchmark bond.

According to the bank, which has been headed since September by Sidi Ould Tah, the issuance attracted strong investor demand, with the order book exceeding 2.6 billion Australian dollars. This enabled the AfDB to raise the amount initially planned to 1 billion Australian dollars, marking its largest benchmark borrowing in Australian currency.

The bank said banks and private banks accounted for 40% of the final allocations. They were followed by asset managers and insurance companies at 32%, hedge funds and trading investors at 22%, and central banks and official institutions at 6%.

Geographically, Australian investors accounted for 49% of the issuance. They were followed by Asia excluding Australia at 44%, the Europe, Middle East and Africa (EMEA) region at 6%, and the United States at 1%. According to the pan-African institution, this reflects “a broad and diversified investor base.”

This is the fourth social bond issued by the AfDB on the Australian market. The funds raised will be used to finance eligible social projects in Africa under the bank’s social bond framework. The Abidjan-based institution said these projects include poverty reduction, job creation and access to essential services.

Nomura, RBC Capital Markets and TD Securities coordinated the operation as lead managers.

Fiacre E. Kakpo