Finance

22-May-2018

The African Development Bank issues EUR 1.25 billion 0.875% 10-year Social Bond due 24 May 2028

On Wednesday, 16th May 2018, the African Development Bank (“AfDB”), rated Aaa/AAA/AAA by Moody’s / S&P / Fitch (with stable outlook) successfully priced a EUR 1.25 billion 10-year Social Bond transaction. The transaction, which follows the inaugural EUR 500 million 7-year Social Bond issued in November 2017, was priced at mid-swaps (MS) minus 8 basis points (bps), 2 bps inside Initial Pricing Thoughts (IPTs). This equated at the time of pricing to a spread of 36.7 bps over the German Bund DBR 0 ½ 15/02/28. The transaction is a testament to AfDB’s established positioning in the...
16-Mar-2018

African Development Bank launches US $2.0-billion 2.625% Fixed Rate Global Benchmark due 22 March 2021

On Wednesday, March 14, 2018, the African Development Bank, rated Aaa/AAA/AAA (Moody’s/S&P/Fitch), priced a new US $2.0-billion 3-year Global Benchmark bond due 22 March 2021. This bond issue represents the Bank’s first public market deal of 2018. It follows the US $2.0-billion 5-year Global Benchmark priced in November 2017, and is in line with its strategy of issuing larger size, more liquid benchmark transactions. The Global Benchmark was very well oversubscribed, with an order book in excess of US $4.25 billion. More than 80 investors participated in the transaction, including six...
13-Dec-2017

EUR 500 million 0.250% 7-year Social Bond Transaction - Due 21 November 2024

Final terms of the transaction Issuer African Development Bank Ratings Aaa / AAA / AAA (Moody’s / S&P / Fitch) Principal Amount EUR 500,000,000 Pricing Date 14 November 2017 Settlement Date 21 November 2017 Maturity Date 21 November 2024 Re-Offer Price/Yield 99.282% / 0.354% annual Coupon 0.25% annually, Act...
05-Oct-2017

AfDB issues its first “Light Up and Power Africa” theme Bond

The African Development Bank (AfDB) has issued the first “Light Up and Power Africa” Bond for SEK 733 million (approximately JPY 10 billion) sold to the Dai-ichi Life Insurance Company, Limited, the sole investor in the transaction.   The “Light Up and Power Africa” Bond supports AfDB’s ambition to achieve an important goal of realizing Africa’s energy potential and bridging the continent’s energy deficit.   Over 645 million Africans have no access to energy. The electricity access rate for African countries is just over 40 percent, the lowest in the world. This...
09-Dec-2015

AfDB approves US $53 million for water in Zimbabwe and financial reform in Chad

Zimbabwe and Chad will benefit from combined grants amounting to US $53.24 million approved by Executive Directors of the African Development Bank Group on Wednesday, December 9, for the funding of a water project and a financial reform programme, respectively. Zimbabwe – US $34.93 million for Bulawayo Water and Sewerage Services Improvement Project The Board approved US $34.93 million for Bulawayo’s Water and Sewerage Services Improvement Project (BWSSIP), which aims to ameliorate the health and social well-being of the people in Bulawayo, the second most populous city in Zimbabwe...
12-Aug-2015

Fitch affirms African Development Bank at ‘AAA’; Outlook stable

Fitch Ratings has affirmed the African Development Bank (AfDB)’s Long-term Issuer Default Rating (IDR)'s at ‘AAA’ with a Stable Outlook. The Short-term IDR has been affirmed at 'F1+'. The ratings are underpinned by strong support from AfDB’s shareholders and by the Bank's intrinsic strengths, in particular its solid capitalisation, high liquidity and conservative risk management policies. The full press release is available on: https://www.fitchratings.com/site/fitch-home/pressrelease?id=989044
29-May-2015

Interview with Stefan Nalletamby, Director, Financial Sector Development, AfDB

The African financial sector is desperately in need of a shot in the arm as it continues to grapple with the legacy of banking systems and financial markets. Development of this sector can play a key role in providing a much-needed engine of domestic growth. Discussions during the African Development Bank’s 2015 Annual Meeting, from May 25-29 in Abidjan also focus on SMEs contributions to growth, especially on increasing private sector involvement in creating wealth. AfDB’s Financial Sector Development Director, Stefan Nalletamby, has analyzed constraints and...
06-Feb-2015

AfDB issues 1.375% USD 1 billion global benchmark due 12 February 2020

On Thursday, February 5, 2015, the African Development Bank (AfDB) successfully launched and priced a new 1 billion 5-year US dollar global benchmark due February 12, 2020. This is the AfDB’s first US dollar global benchmark of the year. The transaction was announced on Wednesday, February 4 at 2:15 p.m. London time with initial price thoughts of midswaps +2 basis points area. Indications of interest exceeded USD 1.6 billion overnight, which enabled the Bank to tighten price guidance to midswaps plus 1 basis points area when opening books at 8:15 a.m. the following day. The orderbook...
13-Dec-2014

AfDB issues a 6.625% ZAR 500 Million Eurobond due 9 December 2017

Issuer:  African Development Bank (AfDB) Rating:   Aaa (Moody’s) / AAA (S&P) / AAA (Fitch) Issue amount:                                    ZAR 500 million Pricing Date:  02 December 2014 Settlement Date:                                09 December 2014 (T+5) Coupon:                                 ...
27-Aug-2014

AfDB prices NZD 100 million Kauri Bond due August 2019

Transaction Highlights African Development Bank (AfDB), rated Aaa (Stable) / AAA (Stable) / AAA (Stable (Moody’s / Fitch / S&P), successfully priced a NZD 100 million 5-year Kauri benchmark due 27th August 2019 through TD Securities. The notes pay a coupon of 4.50% and marks the first Kauri from the AfDB since February 2008. With conditions in New Zealand dollars becoming more favourable for both issuers and investors alike, AfDB was one of the first supranationals to take advantage of the thriving market sentiment by launching its new 5-year Kauri issue into Asia on Monday,...
18-Jul-2014

AfDB issues its inaugural local currency bond in the Nigerian Capital Market

After receiving the Securities and Exchange Commission (“SEC”) of Nigeria’s approval to establish a NGN 160 billion (approximately USD 1 billion) Medium Term Note (MTN) Programme and “No Objection” from the SEC to start the book building process on June 6, 2014, the African Development Bank (“AfDB” or the “Bank”) proceeded to tap the market for its maiden local currency issuance in the Nigerian capital market. The AfDB launched a 7-year, semi-annual fixed rate coupon bearing bond structured with a 3-year grace period preceding a 4-year amortising profile on principal, introducing a...
30-Jun-2014

AfDB and Nomura Announce Sales of Food Security Bond

The African Development Bank (AfDB), a leading multilateral development bank, rated Aaa/AAA/AAA, and Nomura, Asia’s global investment bank, have finalized the terms of secondary distribution of AfDB’s food security bonds to Japanese retail investors. The bonds are denominated in Brazilian Real and have a three-year tenor. This is the first transaction the two organizations have collaborated on in this field. Food security bonds issued by AfDB are underwritten by Nomura and distributed through Nomura’s nationwide domestic franchise. AfDB has placed a special emphasis in agriculture...
10-Mar-2014

AfDB prices SEK 1 billion Green Bond due March 2019

On Thursday, March 6, 2014, the African Development Bank (AfDB) launched its second Swedish Krona (SEK) Green Bond transaction. Coming after its inaugural SEK 5-year Green Bond in floating rate format, AfDB took advantage of the strong positive momentum and demand created from the first deal to follow up with another SEK 1 billion 5-year transaction – this time in fixed rate format. Transaction Highlights: The transaction has a 5-year maturity matched to the Swedish Government Bond (SGB 1052) and was priced at 5-year mid-swap Flat, equivalent to a yield of 1.865%, and a spread of 38....
07-Mar-2014

0.875% US$ 1.0 Billion Benchmark due 15 May 2017

Issuer: African Development Bank (AfDB) Rating: Aaa (Moody’s) / AAA (S&P) / AAA (Fitch) Issue amount: USD 1.0 billion Pricing Date: 05 March 2014 Settlement Date: 12 March 2014 (T+5) Coupon: 0.875% (semi-annual) Maturity:15 May 2017 Reoffer Price: 99.866% Reoffer Yield: 0.918% (semi-annual) Re-offer vs. Mid-Swaps: + 1.0 bp Re-offer vs Benchmark: 0.625% February 2017 +22.85 bp Lead Manager: Barclays, Deutsche Bank, Morgan Stanley, TD Securities Transaction Highlights African Development Bank (AfDB), rated Aaa (Stable) / AAA (Stable) / AAA (Stable (Moody’s...
20-Feb-2014

AfDB - SEK 1,000,000,000 Floating Rate Note due February 2019

Transaction Highlights: The SEK 1 billion 5-year floating rate transaction was launched and priced on Monday 17th February at 3m Stibor flat. The transaction was subscribed in full by SPP, the wholly-owned Swedish Life Insurance and Asset Management company of Storebrand. The Swedish Krona floating rate note is African Development Bank’s (AfDB) inaugural issue in the SEK market and its second Green Bond transaction under its new Green Bond Framework. The Swedish Krona market investor base is one of the largest for Sustainable Investments and has been actively used by the...
12-Feb-2014

AfDB issues its first US dollar Global benchmark for 2014

On Wednesday, March 5, 2014 the African Development Bank (AfDB) successfully issued a new a USD 1 billion three-year global benchmark due on May 15, 2017. The benchmark was announced on March 4, 2014 for execution the following day. Overnight, the joint lead managers gathered more than USD 1.5 billion in expressions of interest, a clear demonstration of the high level of attention the transaction was drawing on the market. Investors’ orders reached USD 2 billion after the book was officially opened the following morning, more than twice the amount the AfDB was willing to issue due to...
26-Sep-2013

AfDB prices a new 5-year US Dollar Global bond

This week, the African Development Bank priced a new USD 1 billion 5-year Global benchmark bond. This is AfDB’s second fixed-rate USD transaction of the year after having issued a 5-year in January. Following the US Federal Reserve’s announcement to continue with loose monetary policy for longer than anticipated and the subsequent stabilization of yields, the AfDB decided to take advantage of a clear issuance window ahead of expected heavy supply with a new 5-year Global benchmark transaction. Final pricing achieved was in the context of midswaps plus 6 basis points.   Final...
30-May-2013

Illicit financial flows: Africa a net creditor to the rest of the world

The result of over eight months of research is overwhelming: since 1980, Africa has lost the same amount of money it received from abroad, from all sources, due to illicit financial flows, according to a joint report launched Wednesday by the African Development Bank (AfDB) and Global Financial Integrity (GFI). The report was discussed during the Bank’s Annual Meetings in Marrakech, as part of a seminar entitled: “Africa’s illicit financial flows: What do they tell us?” “We traditionally think that it is only the countries from the North that pour their money in Africa with the aid and...
29-May-2013

AfDB Posts Strong 2012 Operations Results, Launches New Strategic Focus on Inclusive Growth

The African Development Bank (AfDB) Group posted good operational results in 2012, the Bank’s Treasurer, Pierre Van Peteghen, said in Marrakech on Wednesday, May 29, 2013. Presenting the Bank’s 2012 operations results at its Annual Meetings in the Moroccan city, Van Peteghen also announced that the Bank has developed a Ten-Year Strategy (2013-2022) which focuses on “inclusive growth.” During the financial presentation which was attended by over a thousand delegates including the Governors of the 77 Member States of the Bank, he said the institution continues to maintain its AAA with a...
29-May-2013

New AfDB-GFI Joint Report: Africa a Net Creditor to the Rest of the World

Net Resource Transfers Out of Africa Range from US$597 Billion to US$1.4 Trillion from 1980 through 2009 Unrecorded Illicit Financial Outflows from The Continent Ranged from US$1.22-1.35 Trillion from 1980-2009, Swamping Recorded Financial Transactions Net Resource Deficit, Illicit Outflows Seriously Undermine Development A new joint report by the African Development Bank (AfDB) and Global Financial Integrity (GFI), launched officially on Wednesday, May 29, 2013 at the 48th AfDB Annual Meetings in Marrakech, Morocco, reveals that the African continent has been a long-term net...