<\/p>\n
The transaction, completed on October 28, was the AfDB’s second public Hong Kong Dollar Wonton bond following an inaugural approximately $382 million issuance in March.<\/p>\n
<\/p>\n
The AfDB entered the market amid geopolitical uncertainty and interest-rate volatility, taking advantage of a favourable issuance window before a busy macroeconomic calendar.<\/p>\n
<\/p>\n
AfDB announced the mandate with initial price guidance of three basis points above the Hong Kong Interbank Offered Rate mid-swap benchmark.<\/p>\n
<\/p>\n
Investor demand increased throughout the book-building process, with orders exceeding approximately $433 million, including about $261 million in interest from Joint Lead Managers.<\/p>\n
<\/p>\n
The strong demand allowed AfDB to set the final spread at the mid-swap benchmark, three basis points tighter than the initial guidance.<\/p>\n
<\/p>\n
The Bond was priced at par at 15:31 Hong Kong time with a re-offer yield and coupon of 4.143%.<\/p>\n
<\/p>\n
Hong Kong-based investors received 97% of the allocations.<\/p>\n
<\/p>\n
Bank treasuries accounted for 91% of the transaction, while asset managers and fund managers received the remaining 9%.<\/p>\n
<\/p>\n
The issuance diversifies AfDB\u2019s sources of financing and strengthens access to investors operating in the Hong Kong dollar market.<\/p>\n
<\/p>\n
AfDB said the level of demand reaffirmed investor confidence in the Bank despite difficult global market conditions.<\/p>\n
<\/p>\n
Proceeds from the Bond will support eligible social projects under AfDB\u2019s Sustainable Bond Framework.<\/p>\n
<\/p>\n
The transaction also reinforces AfDB\u2019s commitment to sustainable finance and creates another avenue for mobilising international capital for social development projects across Africa.<\/p>\n
<\/p>\n
The Bond represents AfDB\u2019s second public transaction in the Hong Kong dollar market during 2026, following the 3.25-year issuance completed in March.<\/p>\n
<\/p>\n
The latest five-year transaction extends AfDB\u2019s presence in the market while broadening the maturity profile of Hong Kong dollar-denominated borrowing.<\/p>\n
<\/p>\n
–AfDB\/ChannelAfrica–<\/p>\n","protected":false},"featured_media":43167,"template":"","meta":{"_acf_changed":false,"_members_access_role":[],"_members_access_error":"","_links_to":"","_links_to_target":""},"news-type":[44],"class_list":["post-49486","news","type-news","status-publish","has-post-thumbnail","hentry","news-type-finance","entry"],"acf":{"short_description":"The African Development Bank Group (AfDB) has raised approximately $255 million through a five-year social bond issued in the Hong Kong Dollar market.","published_date":"","news_description":"The African Development Bank Group (AfDB) has raised approximately $255 million through a five-year social bond issued in the Hong Kong Dollar market.","form_embed":"","author":"","image_caption":""},"_links":{"self":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/49486","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/types\/news"}],"version-history":[{"count":3,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/49486\/revisions"}],"predecessor-version":[{"id":49500,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/49486\/revisions\/49500"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media\/43167"}],"wp:attachment":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media?parent=49486"}],"wp:term":[{"taxonomy":"news-type","embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news-type?post=49486"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}