FINANCE

AfDB launches a 3-year $2 billion bond

&NewLine;<p>The African Development Bank&comma; Africa’s premier&NewLine;development finance institution&comma; has launched and priced a US&dollar; 2 billion 3-year&NewLine;Global Benchmark bond due 16 September 2022&comma; its first US&dollar; benchmark of the&NewLine;year&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>This is contained in a statement from Apo&NewLine;Group&comma; made available to OpenLife&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>According&NewLine;to the statement&comma; the bond issue which was launched on September 11&comma; &nbsp&semi;is the Bank’s second Global Benchmark of 2019&comma;&NewLine;following a EUR 1 billion 10-year priced in March 2019&period; With this transaction&comma;&NewLine;the Bank has now raised US&dollar; 4&period;4 billion in 2019 to date and executed 61&percnt; of its&NewLine;borrowing program for the year&period; The transaction received strong support from&NewLine;investors globally&comma; with order books reaching US&dollar; 2&period;8 billion and 53 investors&NewLine;participating&period; The high quality of the order book is illustrated by the strong&NewLine;participation of Central Banks and Official Institutions&comma; taking 64&percnt; of the allocations&period;<br>&NewLine;<br>&NewLine;The African Development Bank decided to take advantage of favorable investor&NewLine;sentiment post summer break to access the 3-year tenor&comma; in spite of volatile&NewLine;market conditions ahead of the Fed Meeting the following week&period; The mandate was&NewLine;announced on Tuesday&comma; September 10&comma; at 12&colon;00 London time with Initial Pricing&NewLine;Thoughts of Mid-Swaps &plus; 13 basis points &lpar;bps&rpar; area&period;<br>&NewLine;<br>&NewLine;The transaction met strong interest from the outset&comma; with Indications of&NewLine;Interest in excess of US&dollar; 1&period;8 billion &lpar;excluding Joint-Lead Managers interest&rpar;&NewLine;when order books officially opened at 08&colon;00 London time the following morning&comma;&NewLine;with initial price guidance of Mid-Swaps &plus; 13bps area&period;<br>&NewLine;<br>&NewLine;Momentum continued throughout the European morning&comma; with orders in excess of&NewLine;US&dollar; 2&period;5 billion around 11&colon;20 London time&period; At this time&comma; final pricing was set&NewLine;at Mid-Swaps &plus; 13bps&period; Following the close of the order book in the US&comma; the size&NewLine;of the transaction was set at US&dollar; 2 billion by 14&colon;20 London time&period;<br>&NewLine;<br>&NewLine;The transaction was priced at 16&colon;24 London time with a re-offer yield of&NewLine;1&period;679&percnt;&comma; equivalent to a spread of 8&period;75bps vs UST 1&period;5&percnt; 15 September 2022&comma; the&NewLine;issuer’s tightest print vs US Treasuries to date&period;<br>&NewLine;<br>&NewLine;&OpenCurlyDoubleQuote;We are delighted with this successful dollar Global Benchmark&comma; and&NewLine;particularly pleased by both the very high quality of the order book and the&NewLine;solid participation of African Central Banks&period;&nbsp&semi;The&nbsp&semi;African Development&NewLine;Bank achieved its tightest ever spread to US Treasuries&comma; and we&nbsp&semi;are&NewLine;grateful to our investors&nbsp&semi;across the world for this outcome&comma; and the&NewLine;financing it will bring to the African continent&comma;” Hassatou Diop N’Sele&comma; Group Treasurer&comma; African Development Bank&NewLine;stated&period;<&sol;p>&NewLine;

Openlife Reporter

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