The African Development Bank (AfDB) has priced a landmark £1 billion 3-year GBP Global Benchmark bond maturing in January 2029, marking its triumphant return to the sterling debt market.
Okay News reports that the issuance, announced on the Bank’s website on Wednesday, attracted overwhelming investor interest and became AfDB’s largest-ever GBP bond transaction.
Books opened with initial guidance at SONIA Mid-Swaps plus 35 basis points, rapidly building to over £1.5 billion in orders including Joint Lead Manager interest.
The bond carries a fixed annual coupon of 3.750 per cent and an annual yield of 3.835 per cent, with a re-offer spread of +15.2 basis points versus the UK Treasury 0.5 per cent January 2029 benchmark.
Investor allocation highlighted strong institutional backing, with bank treasuries taking 66 per cent, central banks and official institutions 26 per cent, and fund managers plus others 8 per cent.
Issued in global format (SEC-exempt), settlement is scheduled for January 14, 2026, with maturity on January 14, 2029.
The transaction underscores AfDB’s ability to tap deep sterling liquidity under favourable conditions, reinforcing global confidence in its top-tier credit quality.
It diversifies funding sources, broadens the investor base, and enables cost-effective financing for development projects across Africa.
AfDB maintains pristine Aaa/AAA/AAA ratings with stable outlooks, affirmed by Fitch in June 2025.
The bond extends AfDB’s GBP yield curve and sets a new record for sterling issuances.
Previous benchmarks include a $2 billion 5-year Global Bond in 2023, which drew over $3.5 billion in orders.
The successful pricing reflects sustained demand for high-quality multilateral debt amid evolving market dynamics.
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