Africa Investments 

African Development Bank launches $2.75 billion 0.875% Global Benchmark due 22 July 2026

The African Development Bank, rated Aaa/AAA/AAA/AAA (Moody’s/S&P/Fitch/Japan Credit Rating, all stable), has launched and priced a $2.75 billion 5-year Global Benchmark bond due 22 July 2026, its second of the year.

With this latest issue, the African Development Bank continues to carry out its funding strategy of issuing large liquid benchmark transactions and adds another on-the-run reference in the 5-year maturity while extending the Bank’s outstanding USD curve. With the final order book closing in excess of $4.2 billion and 82 investors participating, the Bank set the size of the transaction at $2.75 billion. The issue garnered interest from top-quality investors, with particularly good demand from central banks and official institutions.

The Bank’s mandate for a 5-year USD Global Benchmark was announced on Wednesday 14 July at 1.00pm London time with Initial Pricing Thoughts (“IPTs”) released at mid-swaps +3 basis points (bps) area.

The transaction was met with strong interest from the outset and resulted in record Indications of Interest (“IOIs”), in excess of $2.9 billion, by the time books opened on Thursday at 8.00am London time. This allowed the Bank to tighten guidance by 1bp to mid-swaps +2bps area.

Demand continued to grow during the European morning and late Asian session, with investor interest exceeding $3.9 billion by 10.50am London time, allowing the Bank to further tighten and set the spread at mid-swaps +1bp.

The high quality of the order book and limited price sensitivity allowed the Bank to tighten the pricing by 2bps throughout the execution process and achieve the tightest spread vs US Treasuries from a 5-year supranational or agency in 2021.

“We are pleased with the outcome of this global benchmark, particularly the strong and still-growing interest from high-quality investors. This is one of two bonds from the supranational, sovereign and agencies asset class that was priced below US Treasuries + 10 bps in the 5-year maturity, clearly an achievement that will benefit our regional member countries,” said Hassatou Diop N’Sele, Group Treasurer, African Development Bank.

Investor distribution statistics:

The transaction is yet another demonstration of the African Development Bank’s extremely broad and high-quality investor base, with this bond well allocated across different geographies and investor types.

Transaction details:


African Development Bank (“AfDB”)

Issuer Rating:

Aaa / AAA / AAA / AAA (All Stable)



Pricing Date:

15 July 2021

Settlement Date:

22 July 2021 (T+5)

Maturity Date:

22 July 2026


0.875% semi-annual, 30/360, unadjusted following

Spread to mid-swaps:


Spread to benchmark:

UST 0.875% 30 June 2026 + 9.4bps

Re-offer price:


Re-offer yield:

0.888% semi-annual

Lead Managers:

Bank of America, Citi, Deutsche Bank, Nomura and Wells Fargo Securities

Co-Lead Manager:

Castle Oak Securities



African Development Bank Group

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