AfDB issues $2bn five-year global benchmark bond

The African Development Bank has issued a $2 billion five-year Global Benchmark bond with a maturity date of March 14, 2028.

In a statement issued on Thursday, the continental bank described the bond as its first of the year. The bond matures on March 7, 2023.

The bond, according to AfDB, is part of its funding strategy of issuing large liquid benchmark transactions.

"The deal enjoyed good investor demand during the first afternoon and overnight, with Indications of Interest reaching USD 2.1 billion by the time books officially opened on Tuesday, March 7, 2023 at 07:57 London time," according to the statement.

"The orderbook grew throughout the European morning, with investor demand totaling USD 3.5 billion by 10:28 London time, allowing the spread to be tightened by 2bps and set at SOFR mid-swaps + 33bps. Shortly after, at 12:54 p.m. London time, the high quality orderbook enabled the transaction with a size of USD 2 billion to be launched, with Americas books set to go subject at 13:30 p.m. London time."

According to the bank, the issue has piqued the interest of central banks and government agencies.

The bond's lead managers are Barclays, Crédit Agricole CIB, Deutsche Bank, J.P. Morgan, and TD Securities. CastleOak Securities is the co-lead manager.

The AfDB seeks to promote long-term economic development and social progress in its regional member countries, thereby assisting in the reduction of poverty on the African continent.

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