The African Development Bank has successfully issued a €1 billion five-year social bond, maturing in May 2030, with a fixed annual coupon of 2.500%. This benchmark transaction, aligned with the Bank’s Sustainable Bond Framework, aims to finance projects that promote inclusive growth and social development across its regional member countries.
The issuance attracted robust investor interest, with the order book exceeding €1.5 billion, reflecting strong demand from a diverse investor base. The bond was priced at a spread of mid-swaps plus 5 basis points, translating to a re-offer yield of 2.547%. The transaction was led by a consortium of joint lead managers, including prominent global financial institutions.
Proceeds from the bond will be allocated to eligible social projects, such as improving access to essential services, enhancing food security, and supporting employment generation initiatives. This issuance underscores AfDB’s commitment to mobilizing capital for sustainable development and addressing socio-economic challenges within its member countries.
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