AfDB Raises £1 Billion via Sterling Global Benchmark Bond
The African Development Bank (AfDB) has successfully launched a £1 billion three-year Sterling Global Benchmark bond, due January 2029, with a fixed annual coupon of 3.750%. Rated Aaa/AAA/AAA by Moody’s, S&P, and Fitch, the issuance marks AfDB’s largest ever transaction in the GBP market.
The bond attracted strong demand from over 50 institutional investors, with orders exceeding £2.3 billion, more than double the issue size. Bank treasuries accounted for 66% of allocations, central banks and official institutions 26%, and fund managers and other investors the remaining 8%, reflecting broad and diverse participation.
The transaction was priced at 99.763%, offering a yield of 3.835% per annum and a spread of +15.2 basis points over the UK Treasury 0.5% January 2029 benchmark. The bond extends AfDB’s Sterling curve and demonstrates the Bank’s ability to swiftly capture liquidity in a supportive market.
Joint lead managers for the issuance were Bank of Montreal, HSBC, and Banco Santander. Settlement is scheduled for 14 January 2026.
