The African Development Bank (AfDB) has raised $2.5 billion through a new US dollar bond issuance, attracting investor orders totalling $4.8 billion, reflecting strong demand for the bank’s securities in international capital markets.
According to a statement by the bank, the three-year global benchmark bond was priced on October 21, 2026, and is due on January 18, 2030. It carries a fixed coupon of 4.875 per cent and a re-offer yield of 4.933 per cent.
The transaction, announced on October 20, initially attracted indications of interest exceeding $3.7 billion by the following morning. This strong demand enabled 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. More than 80 investors submitted orders, with 71 receiving allocations.
The latest issuance marks AfDB’s third US dollar benchmark transaction in 2026, following a $1 billion 10-year bond issued in January and a $2 billion five-year bond launched in February.
Investors from Europe, the Middle East and Africa accounted for 54 per cent of the allocations, while investors in the Americas received 40 per cent and those in Asia accounted for the remaining six per cent.
By investor category, banks received the largest share, accounting for 48 per cent of allocations. Central banks and official institutions received 39 per cent, while asset managers accounted for 13 per cent.
The bank also disclosed that the bond was priced at a spread of 8.7 basis points above the United States Treasury benchmark security due October 15, 2029. Settlement of the transaction is scheduled for November 2, 2026.
The fundraising comes as development finance institutions continue to access international capital markets to finance their operations and support development programmes across Africa.
AfDB, which holds Aaa/AAA credit ratings from Moody’s, S&P, Fitch and Japan Credit Rating Agency, mobilises funds from international and domestic capital markets to meet its financing needs and support development projects and clients across the continent.
The bank’s borrowing programme for 2026 has been authorised up to 8.9 billion units of account, equivalent to approximately $12.1 billion, excluding hybrid capital issuances.
