The issuance, due March 2031, marks AfDB’s second US‑dollar benchmark of 2026, following its $1 billion ten‑year bond priced in January.

Despite volatile market conditions, the bond attracted exceptional interest from global investors, with total orders exceeding $7 billion. This strong demand enabled AfDB to tighten pricing by 2 basis points from initial guidance and achieve a final spread of 4.5 basis points over US Treasuries, placing the transaction among the tightest five‑year spreads achieved by sovereign, supranational and agency issuers.

More than 110 investors participated in the orderbook, led by central banks and official institutions, which accounted for 61% of allocations. Banks took 27%, while fund managers secured 12%. Geographically, demand was well diversified: 38% from the Americas, 33% from Asia, 23% from Europe and 6% from Africa.

The Bank announced the benchmark transaction on Monday, February 23, opening with initial pricing thoughts of secured overnight financing rate mid‑swaps plus 34 basis points, equivalent to 7.5 basis points above five‑year US Treasuries.

Strong interest from the outset saw indications of more than $5.7 billion by early Tuesday morning. Books officially opened with tightened guidance of plus 33 basis points, and continued momentum allowed pricing to sharpen to plus 32 basis points.

AfDB said the outcome demonstrates the institution’s strong credit standing and its ability to attract substantial international support despite geopolitical uncertainties.

The deal further strengthens the Bank’s diversified global investor base while securing attractive funding levels. The AfDB holds triple‑A ratings from Moody’s, S&P, Fitch and Japan Credit Rating Agency.

–AfDB/ChannelAfrica–