The African Development Bank (AfDB) has just issued a global benchmark bond of 2.5 billion USD for 5 years, or 1376.2 billion FCFA. The mandate for this bond was announced on Monday, March 15, with an initial price indication around Mid-swaps + 6 basis points.

Rated AAA/AAA/AAA/AAA by international rating agencies, the ADB executed the first benchmark bond of the year 2021 for USD 2.5 billion with a maturity of 23 March 2026. The transaction generated strong demand from high-quality investors with interest indications reaching USD 2.4 billion (excluding the interests of leading companies).
In a press release, the financial institution indicates that this new transaction represents the largest 5-year benchmark bond, with the largest order book.
“With an order book reaching USD 3.6 billion (excluding the interests of market leaders) and the participation of 72 investors, the success of this transaction is a vote of confidence from investors in ADB's AAA credit. Bank asset management and cash flow have largely contributed to the dynamics of the operation and its success, illustrating a solid partnership with the ADB,” the statement said

For Hassatou Diop N'Sele, Treasurer of the African Development Bank Group, “this issue is our most important 5-year benchmark bond and the success of its execution reflects the growing interest on the part of our international investor base in the ADB's credit risk and the quality of its transactions.” This transaction illustrates the diversity and quality of the ADB's investor base, with a well-diversified distribution by geographic area and type of investor.