FINANCE

AfDB launches a 3-year $2 billion bond

&NewLine;<p class&equals;"wp-block-paragraph">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 class&equals;"wp-block-paragraph">This is contained in a statement from Apo&NewLine;Group&comma; made available to OpenLife&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p class&equals;"wp-block-paragraph">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;

Share This
Openlife Reporter

Recent Posts

Principles Of Love And Not Self Centredness Will Reduce Insecurity…Femi Oke, President, Jesus Praise Evangelical Ministries International

Principles Of Love And Not Self Centredness Will Reduce Insecurity   OpenLife Nigeria reports that…

22 hours ago

Emirates Marks Significant Milestone, Becomes First Airline Cargo Carrier To Deploy The Boeing 777-300ERSF

Emirates Marks Significant Milestone OpenLife Nigeria reports that Emirates is marking a significant milestone in…

2 days ago

Bandits Allegedly Scam Governor Makinde Of Oyo State Over Kidnapped School Children {Video}

Bandits Allegedly Scam Governor Makinde Of Oyo State Over Kidnapped School Children {Video}   OpenLife…

2 days ago

Jayeola Olalekan Azeez Interviews Randy Peter Akah On His NDC Political Ambition, Vision For A Better Nigeria

Jayeola Olalekan Azeez Interviews Randy Peter Akah On His NDC Political Ambition   OpenLife Nigeria…

2 days ago

Alleged N400 Million Appointment Bribe In Abuja: Falana To Defend Adeyemi

Alleged N400 Million Appointment Bribe In Abuja: Falana To Defend Adeyemi   OpenLife Nigeria reports…

3 days ago

Consumer Exploitation: Fuel marketers Dares Government Over High Prices, Threaten To shut Down Filling Stations

Consumer Exploitation: Fuel marketers Dares Government Over High Prices     OpenLife Nigeria reports that…

4 days ago

This website uses cookies.