The Bank, rated Aaa/AAA/AAA by Moody’s, S&P and Fitch, achieved its largest-ever orderbook for a single-tranche transaction, attracting $6.4 billion in orders.
This marks AfDB’s second 10‑year Dollar benchmark following its inaugural $1 billion issuance in June 2025. Strong investor demand allowed the Bank to tighten pricing by 4 basis points from initial levels and secure a final spread of 7.8bps versus US Treasuries, 4bps tighter than the June 2025 deal.
The bond drew interest from over 109 investors, with allocations made to 37 accounts. Demand was well diversified geographically and by investor type. Central banks and official institutions took the largest share at 51%, followed by asset managers (23.2%), banks (20.9%) and others (4.9%).
The transaction was announced on Tuesday, January 12 at 12h00 CAT following the release of US CPI data, with initial price thoughts at SOFR MS +45bps. By early Wednesday morning, indications of interest had exceeded $3.5 billion, allowing books to open 2bps tighter at SOFR MS +43bps. As demand continued to build, the spread was set at SOFR MS +41bps, backed by an orderbook greater than $6.2 billion, including $200 million in joint lead manager interest.
Books closed at 08h45 CAT in Asia and EMEA and at 11h30 CAT in the US at a final size of $6.1 billion. The transaction priced at 14h09 CAT with a re‑offer yield of 4.214%, equivalent to a spread of 7.8bps over the 4% November 2035 US Treasury.
AfDB said the deal underlined its strong access to global capital markets and the confidence investors continue to show in the institution, especially amid shifting interest‑rate expectations. The successful issuance broadens the Bank’s global investor base and reinforces its ability to raise funding efficiently to support its development mandate across Africa.
–ChannelAfrica–
