African Development Bank launches $1bn bond issue

Feb 09, 2010

A three-year $1 billion (€728 million) global bond issue has been launched and priced by the African Development Bank.

The issue was priced at mid-swaps less two basis points, which the organisation says is in keeping with its AAA credit rating.

Also, the Bank announced that the issue was oversubscribed - totalling approximately $1.4 billion of orders.

Manager of Capital Markets and Financial operations Hassatou N'Sele stated: "The success of this deal is a reflection of the well-executed benchmarks we have brought into the market and the intensive investor works we have embarked upon."

He added that there has been very strong investment demand from central banks across the world.

The funds generated will be earmarked for the African Development Bank's economic and social projects across the continent.

Last year, the Japan Credit Rating Agency confirmed the African Development Bank's AAA credit rating on the basis of its strong financial structure and ability to lend to its member countries.