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AfDB issues its debut 7-year US dollar global benchmark


Tunis, September 17, 2014 – On Tuesday, September 16, 2014, the African Development Bank (“AfDB”) successfully issued a new a 1 billion 7-year US dollar global benchmark due September 23, 2021. This is the AfDB’s second US dollar global benchmark of the year, following a successful 3-year benchmark transaction executed in March. This transaction represents the first-ever 7-year benchmark from the AfDB and the longest point on the Bank’s liquid global benchmark curve.

The transaction was announced on Monday, September 15, 2014 shortly after 10 a.m. London time for potential execution the following day, subject to market conditions. Initial price thoughts of midswaps plus 7 basis points area were released thereafter at the opening of the New York markets.

The order book grew extremely quickly with indications of interest in excess of USD 1.7 billion before books officially opened, a clear demonstration of the high level of attention the transaction was drawing in the market. Given the great reception of the transaction and the quality of the order book, the spread was set at midswaps plus 5 basis points as books formally opened on Tuesday, September 16, 2014 at 8 a.m. London time.

With no spread sensitivity from investors, the book continued to grow after the official open. Given the Bank’s strong liquidity position, the deal size was capped at a maximum of USD 1 billion from the outset. Books closed at 9 a.m. London time after only an hour of book-building, capturing orders in excess of USD 2 billion.

The strength of the order book and level of oversubscription allowed the Bank to price its new benchmark at midswaps plus 5 basis points, 2 basis points inside the initial price thoughts. At midswaps plus 5 basis points, the deal is the tightest of the year to date at this tenor in the sovereign, supranational and agency sector.

More than 50 investors participated in the transaction. Final distribution figures highlight the AfDB’s strong penetration across regions. The order book was well diversified geographically with high quality orders from bank treasuries, central banks, official institutions, and asset managers.

* Europe, Middle East, and Africa
** Insurance and Pension Funds

Joint Lead Managers on the transaction were BNP Paribas, Citi, Goldman Sachs International, and Nomura.

The AfDB is rated triple-A by all major credit rating agencies including Fitch, Japan Credit Rating Agency, Moody’s, and Standard & Poor’s. The new USD 1 billion global benchmark transaction demonstrates the loyal following the Bank benefits from in the international capital markets.


Contact:, tel. +216 71 10 29 06

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