Afreximbank Leads Successful EUR 750 Million Eurobond Issuance for BADEA

African Export-Import Bank (Afreximbank) has successfully served as the Joint Global Coordinator and Joint Lead Manager for the Arab Bank for Economic Development in Africa (BADEA)’s second EUR 750 million senior Eurobond issuance. The bond, due March 2028, was issued under BADEA’s Euro Medium-Term Note (EMTN) programme and is listed on the London Stock Exchange.

The proceeds from the issuance will be utilized for general corporate purposes, including expanding BADEA’s loan book in Sub-Saharan Africa as part of its 9th Strategic Plan (2025-2029). BADEA, founded in 1974 and headquartered in Riyadh, Saudi Arabia, channels development finance to 44 non-Arab African countries.

The bond issuance was met with strong demand, being 3.0x oversubscribed. Over 60 high-quality institutional investors, including central banks, asset managers, development finance institutions, pension funds, and commercial banks from Europe, the UK, the Middle East, Africa, and Asia participated. 

Thanks to proactive investor engagement and market momentum, the deal was upsized by 50%, surpassing the initial target, and the credit spread was tightened by 15bps during a 4-day marketing roadshow. The final pricing for the bond was set at 75bps over EUR mid-swaps with an annual coupon of 3.000%.

This transaction marked a significant improvement over BADEA’s debut 2024 bond issuance, achieving a larger issuance size, better credit spread, and more favorable coupon terms.

Afreximbank’s Advisory and Capital Markets (ACMA) department played a key role in the transaction, acting as Joint Global Coordinator and Joint Lead Manager for the second consecutive time, working alongside international banking partners. 

African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution that promotes intra- and extra-African trade. With over 30 years of experience, the bank is committed to transforming Africa’s trade structure and accelerating industrialization. 

Afreximbank is also a strong supporter of the African Continental Free Trade Agreement (AfCFTA) and has launched the Pan-African Payment and Settlement System (PAPSS), which the African Union adopted as the platform for AfCFTA implementation.

As of December 2023, Afreximbank’s total assets and guarantees exceeded US$37.3 billion, with shareholder funds amounting to US$6.1 billion. The bank maintains investment-grade ratings from GCR, Moody’s, Japan Credit Rating Agency, and Fitch.