The African Development Bank (AfDB) has priced a £1 billion 3-year GBP Global Benchmark bond due January 2029, achieving its largest ever sterling issuance.
The transaction closed on January 7, 2026, capitalising on favourable market conditions.
Books opened with initial guidance of SONIA Mid-Swaps plus 35 basis points.
Order book exceeded £1.5 billion, including joint lead manager interest, by mid-morning UK time.
The bond offers a fixed annual coupon of 3.750 per cent and yield of 3.835 per cent.
Re-offer spread settled at +15.2 basis points over the UK Treasury 0.5 per cent January 2029 benchmark.
Bank treasuries dominated allocations at 66 per cent, reflecting strong institutional backing.
Central banks and official institutions took 26 per cent, while fund managers and others claimed 8 per cent.
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The global format bond, exempt from SEC registration, settles on January 14, 2026, with maturity on January 14, 2029.
This issuance extends AfDB’s GBP yield curve and reinforces its access to deep sterling liquidity.
It underscores investor confidence in the bank’s top-tier AAA/Aaa/AAA credit ratings with stable outlooks.
Fitch Ratings affirmed the AAA rating in June 2025.
The deal diversifies funding sources and supports AfDB’s mandate to finance development projects across Africa at competitive rates.
It follows the bank’s $2 billion 5-year Global Benchmark bond in 2023, which attracted over $3.5 billion in orders.
AfDB continues demonstrating strong market presence as a leading multilateral development finance institution.
