Posted by: africanpressorganization | 23 January 2009

AfDB Executes US$1 Billion Bond Issue



AfDB Executes US$1 Billion Bond Issue


TUNIS, Tunisia, January 23, 2009/African Press Organization (APO)/ — The AfDB on January 13, 2009, successfully executed a US$ 1 billion benchmark global bond issue in the international market. The 3-year bond, lead-managed by BNP Paribas, Citi and Goldman Sachs, was issued under the Bank’s US$ 3.7 billion 2009 borrowing program. It was priced at mid-swap + 40 basis points and carries a coupon of 1.875%. The transaction marks the Bank’s strong return to the US Dollar global benchmark market as it had not made any issue of such a magnitude since 2003, and follows from a successful 3-year US$ 500 million bond in 2008. The Bank’s issue was made on the back of successful road shows in Europe, the Middle East and Asia and followed from a careful monitoring of the market and positive feedback from investors. The book was of the highest quality with central banks being strongly represented (88%). The successful outcome of this transaction is credit to the standing AfDB holds in the capital markets as one of the few institutions still having easy access to funding in spite of the challenging and difficult conditions faced by issuers worldwide.



SOURCE : African Development Bank (AfDB)


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