African Development Bank launches inaugural Dual Tranche issuance consisting of new USD 2 billion 3.875% 3-year Global Benchmark, and new USD 1 billion 4.5% 10-year Global Benchmark
On Tuesday 3rd June, the African Development Bank (“AfDB”), rated Aaa/AAA/AAA (Moody’s/S&P/Fitch) successfully priced a dual tranche comprising a new USD 2 billion 3-year Global Benchmark and a new USD 1 billion 10-year Global Benchmark. This transaction represents the Bank’s first ever dual tranche and its inaugural 10-year USD Global Benchmark.
The dual tranche transaction benefitted from a strong reception amidst a busy primary market, with oversubscription recorded at 2.9x on the 3-year tranche and 5.1x on the 10-year tranche. With a combined order book of USD 10.8 billion, it is the largest achieved by the AfDB for a 3-year USD transaction with a final book in excess of USD 5.7 billion.
The transaction received strong support from the global investor community, allowing the Bank to achieve a final spread of 6.55bps vs UST on the 3-year tranche, the tightest ever for an AfDB USD 3-year transaction and the tightest for any Supras, Sovereign and Agencies (SSAs) issuer in 2025 to date.
Investor distribution was well diversified across geographies with over 70 allocated orders on each tranche. The inaugural 10-year tranche attracted a total of 110 orders (compared to 102 for the 3-year tranche) and saw 69.5% participation from Central Banks/Official Institutions vs 39.2% for the 3-year tranche.
The high-quality of the order book is further underscored by the strong participation of Bank Treasuries, which along with the Central Banks/Official Institutions accounted for 90% of the 3-year tranche and 85% of the 10-year tranche, reflecting strong investor confidence in the African Development Bank’s long-term creditworthiness and enduring appeal among USD investors...Read more on AfDB
Source: AfDB