AfDB Raises $2.5bn Through Bonds As Investor Demand Hits $4.8bn

The African Development Bank (AfDB) has raised $2.5 billion through a new US dollar bond issuance, attracting investor orders worth $4.8 billion.

The bank in a statement said the three-year global benchmark bond, priced on October 21 and due January 18, 2030, was issued at a fixed coupon of 4.875 per cent, with a re-offer yield of 4.933 per cent, according to the bank.

The transaction, announced on October 20, recorded indications of interest exceeding $3.7 billion by the following morning, prompting the bank to tighten its pricing spread to 28 basis points above SOFR mid-swaps, two basis points below its initial guidance.

The final order book closed at $4.8 billion, including $50 million in interest from the joint lead managers, underscoring the appetite of international investors for the bank’s securities.

The issuance is the AfDB’s third US dollar benchmark transaction in 2026, following a $1 billion 10-year benchmark in January and a $2 billion five-year benchmark in February.

The latest fundraising comes as development finance institutions continue to tap international capital markets to secure funding for their operations and development programmes across Africa.

AfDB, which carries Aaa/AAA ratings from Moody’s, S&P, Fitch and Japan Credit Rating Agency, said the transaction attracted more than 80 investor orders, with 71 orders receiving allocations.

Investors in Europe, the Middle East and Africa accounted for 54 per cent of the allocations, while the Americas accounted for 40 per cent and Asia six per cent.

By investor category, banks received 48 per cent of the allocation, followed by central banks and official institutions with 39 per cent, while asset managers accounted for the remaining 13 per cent.

The bank said the transaction was priced at a spread of 8.7 basis points over the United States Treasury benchmark security due October 15, 2029. Settlement is scheduled for November 2, 2026.

AfDB mobilises resources from international and domestic capital markets to meet its funding requirements and provide financing for development projects and clients across the continent.

The bank’s 2026 borrowing programme has been authorised up to 8.9 billion units of account, equivalent to approximately $12.1 billion, excluding hybrid capital issuances.