AfDB Launches Three-Year $1b Global Benchmark

AfDBAfrican Development Bank (AfDB)

The African Development Bank (AfDB), rated Aaa/AAA/AAA, has launched $1 billion fixed rate dollar Global benchmark due 20 September 2019, the issuer’s fourth global benchmark issue this year.

The transaction has a coupon of 1.125 per cent and was priced at a spread of mid-swaps plus 9 basis points, the tightest three-year benchmark pricing by the issuer since 2014, and equivalent to 26.2 basis points over the 0.875 per cent UST due September 2019. Joint lead managers are Barclays, BofA Merrill Lynch, J.P. Morgan and TD Securities.

The mandate for a new $1 billion “no-grow” three-year benchmark was announced in London last Tuesday, with books open for indications of interest (IoIs) with initial pricing thoughts in the context of mid-swaps plus nine basis points (bps) area.

Books were officially open at around 08.10 London time on Wednesday, September 14. IoIs stood in excess of $600 million at this time, with official guidance unchanged at mid-swaps plus nine basis points area.

The order-book continued to grow, and by mid-morning orders stood in excess of $1 billion.

The distribution by investor type was as follows: 67 per cent with central banks and official institutions, 17 per cent with fund managers, 11 per cent with banks, and five per cent with pension funds and corporates.

In terms of geographical distribution, 46 per cent of the bonds were placed with accounts in the Americas, 38 per cent with Europe, 11 per cent with Asia and five per cent with the Middle East and Africa. The final orderbook stood in excess $1.3 billion, with 40 investors participating.

About the Author

Samed Olukoya
Samed Olukoya is the CEO/Founder of investorsking.com, a digital business media, with over 10 years' experience as a foreign exchange research analyst and trader. A graduate of University of East London, U.K. and a vivid financial markets analyst.

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