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USD 1bn Global Benchmark 3.000% Issue due 27 May 2014


Terms of Transaction

  • African Development Bank (AfDB)
  • Principal Amount: USD 1,000,000,000
  • Pricing Date: May 19, 2009
  • Settlement Date: May 27, 2009
  • Maturity Date: May 27, 2014
  • Re-Offer Spread: UST 1.875% due April 2014 +90.25 bps, Midswaps +50 bps
  • Coupon: 3.00% semiannual
  • Joint Bookrunners: Daiwa / Goldman Sachs International / HSBC / Morgan Stanley
  • Co-Managers: Mizuho / Standard Chartered

Overall deal points:

  • The African Development Bank, rated Aaa/AAA/AAA (Moody’s/S&P/Fitch), has successfully priced a USD 1 billion Global benchmark issue due 27 May 2014 through DAIWA, GOLDMAN SACHS INTERNATIONAL, HSBC, and MORGAN STANLEY. The issue pays a semiannual coupon of 3.000% and has a reoffer price of 99.899% to give a spread of +90.25 bps over the UST 1.875% due April 2014
  • The African Development Bank (AfDB) is the premier development institution in Africa, a multilateral development bank or supranational dedicated to the promotion of sustainable economic growth and to reduce poverty in the continent
  • This transaction is the third AfDB transaction in the USD 1bn Global benchmark market and the second completed so far in 2009, following from a very successful 3-year USD 1bn benchmark issued in January 2009
  • With this transaction, AfDB has now completed over 80% of its USD 3.7bn current borrowing programme
  • Following on from favourable market conditions and positive investor feedback, a 5-year USD Global benchmark transaction was announced at 8.45 am London time / 3.45 am New York time on Monday, 18th May. The transaction was announced on the back of significant momentum in the USD market, particularly in favor for higher quality borrowers in the sovereign/supranational/agency space
  • Books built during Monday morning and continued to build overnight into Asia and the US. By Tuesday European morning, the book was almost three quarters subscribed with additional momentum coming from the US throughout Tuesday during the day. Books closed at 3:00 pm London time / 10:00 am New York time 
  • An hour after closing books, a USD 1 billion Global benchmark was priced at Mid Swaps plus 50bps, within the original guidance. The orderbook was of the highest quality, in line with other transactions recently priced in the sovereign/supranational/agency space 
  • The successful outcome of the trade and high quality of the orderbook is credit to the standing AfDB holds in the capital markets

Summary of Distribution:

  • Close to 50 accounts participated, achieving strong investor diversification, whilemaintaining a high quality order book
  • Allocations by Geography: 58% Americas, 31% EMEA, 11% Asia
  • Allocations by Investor Type: 39% Bank / Private Bank, 28% Fund Manager, 21% Central Bank / Official Institution, 12% Pension Fund /Insurance

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