AfDB issues 2.125% US$ 2 Billion Global Benchmark due 16 November 2022

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On Wednesday, November 8, 2017, the African Development Bank (AfDB), rated Aaa (Moody’s) / AAA (S&P) / AAA (Fitch), launched and priced a new US$ 2 billion 5-year Global benchmark transaction due 16 November 2022.

The new 5-year US$ benchmark issue:

-  is AfDB’s second US$ Global benchmark this year (following the very successful US$2.5bn 3-year issued back in March) and the largest 5-year US$ benchmark to date from the issuer;

-  brings a new liquid and on-the-run reference on the 5-year point and extends AfDB’s outstanding US$ curve;

-  further demonstrates AfDB’s commitment and strategy to establish liquid lines at the key benchmark maturities. Following the issuance of the largest ever AfDB US$ benchmark in March, the success of this 5-year transaction is a clear vote of confidence from investors of AfDB’s issuance strategy.

Given the constructive market backdrop after a combination of European holidays, Fed meeting, US employment data and the lead up to the announcement of Jerome Powell as the new Fed chair last week, the AfDB decided to announce the mandate for a new 5-year Global US$ transaction on Tuesday, November 7, 2017 at 8:30 am London time. Initial price thoughts of midswaps +12 basis points area were subsequently released to the market at 12:00 pm London time.

Initial investors’ reaction was good with interest exceeding US$ 1.3 billion before the books were officially opened the following morning at 8:10 am London time with a spread guidance of midswaps +12 basis points area, in line with initial pricing thoughts.

The order book grew steadily during the morning session with demand exceeding US$ 2 billion by 11:25 am London time. EMEA and Asian books went subject at 12:00pm London time. By 2:15pm London time, books had continued to grow to in excess of US$ 2.35 billion (excluding JLM interest), and the deal was subsequently launched as a US$ 2 billion 5-year at m/s+12bps.

The new US$ 2 billion 5-year benchmark priced at 4.45pm London time at m/s+12bps implying a 19.35bps spread over the benchmark Treasury and a re-offer yield of 2.179%.

More than 55 investors participated in the transaction, which attracted strong interest from central banks and official institutions who bought the largest share of the bonds (49%) followed by bank treasuries (32%) and fund managers (10%). In terms of geography, Europe/Middle East/Africa (EMEA) accounts were very well represented (42%) closely followed by the Americas (41%) and Asian accounts (17%) who completed the placement.

Transaction details:

Issue Amount

US$ 2 billion

Pricing Date

8 November 2017

Payment Date

16 November 2017

Maturity Date

16 November2022

Re-offer Price


Re-offer Yield

2.179% semi annual

Semi-Annual Coupon

2.125% 30/360

Re-offer Spread

19.35bps  over the 2% UST due 31-Oct-22





The joint lead managers on the transaction were Barclays, BNP Paribas, Citi, J.P. Morgan and Wells Fargo.


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