By Abubakar Ojima-ojo
The African Development Bank has raised $2.5bn through a US dollar bond issuance after attracting investor orders worth $4.8bn, reflecting strong demand for the lender’s securities in international capital markets.
The bank disclosed this in a statement, adding that the three-year global benchmark bond was priced on October 21, 2026, with a fixed coupon of 4.875 per cent and a re-offer yield of 4.933 per cent.
The transaction was initially announced on October 20, with indications of interest exceeding $3.7bn by the following morning.
According to the bank, the strong demand enabled it to tighten the pricing spread to 28 basis points above SOFR mid-swaps, two basis points below its initial guidance.
The final order book closed at $4.8bn, including $50m in interest from the joint lead managers.
The issuance represents the AfDB’s third US dollar benchmark bond transaction in 2026, following a $1bn 10-year bond in January and a $2bn five-year issuance in February.
The latest fundraising comes amid continued efforts by development finance institutions to mobilise resources from international capital markets to support development programmes across Africa.
The bank said the transaction attracted more than 80 investor orders, with 71 investors receiving allocations.
Investors from Europe, the Middle East and Africa accounted for 54 per cent of the allocations, while those from the Americas received 40 per cent. Asian investors accounted for the remaining six per cent.
By investor category, banks received the largest share, accounting for 48 per cent of the allocation.
Central banks and official institutions received 39 per cent, while asset managers accounted for 13 per cent.
The bond was priced at a spread of 8.7 basis points above the United States Treasury benchmark security due October 15, 2029. Settlement is scheduled for November 2, 2026.
The AfDB, which holds Aaa/AAA credit ratings from Moody’s, S&P, Fitch and Japan Credit Rating Agency, raises funds from domestic and international capital markets to finance its operations and development projects across the continent.
Its 2026 borrowing programme has been authorised up to 8.9 billion units of account, equivalent to approximately $12.1bn, excluding hybrid capital issuances.
The latest bond sale adds to the bank’s efforts to secure funding for its development financing activities amid continued demand from global investors for its debt securities.
