• AfDB raised $3 billion in a two-part bond issuance in U.S. dollars.

• The deal included the Bank’s first-ever 10-year global dollar bond.

• Strong market demand showed confidence in the Bank’s leadership and credit.

The African Development Bank (AfDB) has raised a total of $3 billion in a dual-tranche dollar bond issuance, which included the institution’s first-ever 10-year global bond in U.S. dollars. The deal was arranged by J.P. Morgan Securities, which announced that no market stabilization was needed following the issue; an indication of strong investor demand.

The first tranche was a $1 billion bond with a 10-year maturity and a 4.5% coupon, due in 2035. The second tranche raised $2 billion through 3-year notes with a 3.875% coupon, due in 2028. Both tranches are listed on the Luxembourg Stock Exchange’s Regulated Market.

This successful fundraising operation comes during a leadership transition at the AfDB. President Akinwumi Adesina recently completed his second term, and during the Bank’s annual meetings held from May 26 to May 30, 2025, he pointed to international investor trust and the preservation of the Bank’s AAA credit rating as two of his key legacies. The strong market reception may also reflect growing confidence in the newly elected president, Dr. Sidi Ould Tah, who led the Arab Bank for Economic Development in Africa (BADEA).

Investor confidence was visible on two levels. First, the 10-year bond’s 4.5% coupon was very close to the 4.35% yield on U.S. Treasury bonds of the same duration, even though the AfDB operates in regions largely rated B or below. Second, no market stabilization intervention was needed, showing that the securities were well absorbed by investors from the outset.

The operation was led by a group of five major investment banks. J.P. Morgan Securities acted as stabilization coordinator and joint bookrunner, alongside Bank of America Securities, BNP Paribas, Nomura International, and Wells Fargo Securities. These institutions managed the placement with institutional investors and oversaw post-issuance price behavior.

This marks an important step in AfDB’s capital markets activity, especially as it explores longer maturities in hard currency. The dual-tranche structure gives the Bank more flexibility in adapting its financing tools to market conditions and funding needs.

According to data from Ecofin Agency, the AfDB has carried out 17 bond issuances since the start of 2025 in multiple currencies, including the Nigerian naira, Kenyan shilling, and South African rand, raising a combined total of $14.17 billion.