12 °c
London
Wednesday, June 29, 2022
No Result
View All Result
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About
No Result
View All Result
FurtherAfrica
No Result
View All Result
Home Africa

AfDB launches US$2b 2.625% fixed rate global benchmark due March 2021

FurtherAfrica by FurtherAfrica
March 22, 2018
in Africa, Banking, Economy, Finance
Reading Time: 2 mins read
975 20
0
AfDB launches US$2b 2.625% fixed rate global benchmark due March 2021
Share via QRWhatsappShare on FacebookShare on TwitterLinkedInPinteresteMail

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 that were new to the Bank, demonstrating that the deal was well placed across diversified geographies and investor type. The high quality of the order book is illustrated by the strong participation of Central Banks and Official Institutions.

The African Development Bank decided to take advantage of the positive market backdrop and of the widening in US dollar swap spreads to issue its first Benchmark of the year. The issuer announced the mandate on Tuesday, March 13, at 2:50pm London time with Initial Pricing Thoughts (IPTs) in the context of mid-swaps plus 1 basis point (bp) area.

The deal enjoyed a very strong reception from the outset. Indications of Interest (IOIs) from the high-quality investor base accumulated at a rapid pace, and by the end of the US trading session, IOIs exceeded US $2.0 billion (excluding Joint-Lead Managers interest). Books officially opened in the European morning at 8:00am London time, with price guidance reviewed to mid-swaps flat, 1 basis point tighter than IPTs, reflecting the strong dynamics of the transaction.

Momentum continued to build throughout the European morning, with books exceeding US $3.0 billion within an hour, and US $4.0 billion (excluding Joint-Lead Managers interest) by midday London, allowing the issuer to set the spread 1bp tighter at mid-swaps minus 1bp. Investors showed strong commitment to the transaction through limited price sensitivity.

The transaction was priced at 4:50pm London with a re-offer yield of 2.661%, equivalent to a spread of 26.35bps over the 3-year US Treasury benchmark 2.375% March 2021.

image:AfDB

Source: AfDB

Related

Tags: afdbafricaafrican development bankBondFeatureFundGlobal Benchmark
ScanSendShare398Tweet249Share70Pin90Send
FurtherAfrica

FurtherAfrica

Founded in 2015 FurtherAfrica is an online platform centralising news and content focusing on the development and growth story of the African continent.

Related Posts

Business

Qatar investors acquire Rwanda Umubano hotel

by Taarifa Rwanda
June 29, 2022
Angola Capital Markets Commission analyses privatisations through stock exchange
Finance

Nairobi Stock Exchange Africa’s 3rd poorest performer

by The Exchange
June 29, 2022
FurtherAfrica join forces to promote ATIGS Dubai 2020
Business

Theorems Groups – Sarko Partners join forces to enter SADC

by Elizabeth Khumalo
June 29, 2022
Banks using US$ should think about their Crypto exposure – FinCEN Director
Finance

Cryptocurrency offers hope for Africa’s economic resurgence

by Web3Africa
June 29, 2022
The tripartite network theory in the gold mining industry: a lesson for Africa
Commodities

Ethiopia’s gold export generated US$513.9M in 11-month

by FurtherAfrica
June 29, 2022
Angola Oil & Gas 2022
 
AFSIC 2022
 
Great Limpopo Transfrontier Park
 
MozParks

Translate this page

Read the Latest

Business

Qatar investors acquire Rwanda Umubano hotel

by Taarifa Rwanda
June 29, 2022
0

Rwanda has handed over the former Umubano hotel to Kasada, a leading independent investment platform dedicated to hospitality investments in...

Read more
Angola Capital Markets Commission analyses privatisations through stock exchange

Nairobi Stock Exchange Africa’s 3rd poorest performer

June 29, 2022
FurtherAfrica join forces to promote ATIGS Dubai 2020

Theorems Groups – Sarko Partners join forces to enter SADC

June 29, 2022
Banks using US$ should think about their Crypto exposure – FinCEN Director

Cryptocurrency offers hope for Africa’s economic resurgence

June 29, 2022
The tripartite network theory in the gold mining industry: a lesson for Africa

Ethiopia’s gold export generated US$513.9M in 11-month

June 29, 2022

FurtherAfrica Partners Network

The Exchange Club of Mozambique Taarifa Rwanda
TechGist Africa Africa Oil & Power Farmers Review Africa
Tanzania Invest Zambia Invest See Africa Today
Africa Global Funds Novafrica CrudeMix Africa
Harambee Africa Botswana unplugged Financial Insights Zambia
Digilogic Africa Web3Africa

Subscribe to FurtherAfrica

Enter your email address to receive new articles on your email.

Join 73,051 other subscribers.

FurtherAfrica

© 2021 FurtherMarkets

FurtherAfrica is a FurtherMarkets Limited platform

  • Countries
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About

Follow Us

No Result
View All Result
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About

© 2021 FurtherMarkets

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?
 

Loading Comments...