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AfDB launches another social bond


THE African Development Bank (AfDB) last week launched and priced a new EUR1,25-billion social bond, with a September 2029 maturity date.

The bond pays a coupon of 2,250% with a reoffer yield of 2,310%.

The new seven-year euro (EUR) transaction marks the AfDB’s second EUR Global Benchmark in 2022, following the EUR 1 billion five-year transaction issued in March, extending further the bank’s euro curve.

Additionally, this new line brings a new liquid and on-the-run reference point in the seven-year part of the AfDB’s EUR curve, refreshing a key benchmark maturity, which the AfDB last visited in 2017.

By issuing social bonds to finance socio-economic development in its regional member countries, the bank is advancing its mission and strategy – to spur sustainable economic development and social progress in Africa – and is capitalising on its strong track record of financing projects with strong social impact on the continent.

The eligible projects to be financed with the proceeds of this new EUR-denominated social bond are expected to lead to poverty reduction and job creation, as well as inclusive growth across age, gender and geography, thus improving the quality of life for the people of Africa.

Books officially opened the following morning, on 7 September, and investor interest continued to grow with the book closing in excess of EUR 2,3 billion.

Some 71 investors participated in the offering, while the quality of the book firmly supported the launch of a EUR1,25 billion transaction.

Notably, at EUR 2,3 billion, the deal’s order book represents AfDB’s largest-ever book for a EUR benchmark transaction.

The AfDB is rated as a good investment opportunity by both Moody’s and Fitch.





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