AfDB Raises AUD 1 Billion for Social Projects in Africa
The African Development Bank (AfDB) has successfully launched a AUD 1 billion, five-year Kangaroo Social Bond, due in January 2031, marking its first new Australian dollar benchmark issuance since February 2025.
The bond, which carries a 4.6 per cent coupon, was priced on 13 January 2026 at ASW plus 40 basis points, equivalent to ACGB December 2030 plus 40.7 basis points. AfDB is rated Aaa/AAA/AAA by Moody’s, S&P and Fitch, all with stable outlooks.
The transaction attracted strong investor demand from the outset. Order books exceeded AUD 1.67 billion by the end of the first day of marketing and continued to build during the European trading session, eventually surpassing AUD 2.62 billion. This enabled AfDB to upsize the deal from an initial minimum target of AUD 750 million to AUD 1 billion, making it the Bank’s largest-ever AUD benchmark issuance.
Banks and private banks accounted for the largest share of allocations at 40 per cent, followed by asset managers and insurance companies at 32 per cent, hedge funds and trading accounts at 22 per cent, and central banks and official institutions at 6 per cent.
Geographically, demand was well diversified, with investors from Australia (49 per cent), Asia excluding Australia (44 per cent), Europe, the Middle East and Africa (6 per cent), and the United States (1 per cent).
This issuance represents AfDB’s fourth Social Bond in the Australian dollar market. Proceeds will be used to finance eligible social projects under the Bank’s Social Bond Programme, aimed at promoting sustainable economic development and social progress across Africa. The projects supported are expected to contribute to poverty reduction and job creation.
The bond will settle on 22 January 2026 and mature on 22 January 2031. Nomura, RBC Capital Markets and TD Securities acted as Joint Lead Managers on the transaction.
The successful issuance underscores AfDB’s strong standing among global investors and its continued commitment to mobilising capital for social and developmental impact across the African continent.
