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Success of a New AfDB USD 1 bn Global Bond Issue
Tunis, 30 September 2009 – As part of its 2009 borrowing program, the African Development Bank successfully executed a USD 1 billion benchmark global bond issue in the international market. The 3-year bond, lead managed by Credit Suisse, Deutsche Bank, Goldman Sachs and Morgan Stanley, was priced at mid swap flat and carries a coupon of 1.75%.
“With an orderbook in excess of USD 1.5 billion, this transaction is a testimony of the confidence capital markets have towards the African Development Bank” says the institution’s Treasurer, Pierre Van Peteghem. “It is the fifth transaction by the Bank in 2009 and the third USD 1 bn Global benchmark market completed in 2009.”
“The successful outcome of this transaction is credit to the standing AfDB enjoys in the capital markets and is a result of the extensive investor work undertaken by the Bank to inform the investor community of AfDB’s operational and financial strength,” indicates Hassatou N’Sele, Capital Markets and Financial Operations Manager. Investor participation was well distributed geographically with Americas leading with 57% followed by the Middle-East (18%), Europe (16%) and Asia (9%).
The orderbook was of the highest quality with Central Banks/Official Institutions and Fund Managers being heavily represented (52% and 42%, respectively).
The transaction is the Bank’s ninth global bond since 2002 which continues the strategy of maintaining presence in that market as a rare but consistent issuer. The AfDB’s borrowing program was authorized for an amount of up to USD 9.8bn for 2009, out of which the Bank has completed approximately 61%.