The African Development Bank (AfDB) has successfully priced a £1 billion 3-year GBP Global Benchmark bond due January 2029, marking its return to the sterling debt market.
This is according to a statement published on the Bank’s official website on Wednesday.
The transaction was executed amid strong market conditions, attracting robust investor demand and resulting in the largest-ever GBP bond issuance by AfDB.
What they are saying
AfDB announced the new GBP Global Benchmark with books opening at an initial price guidance of SONIA Mid-Swaps (MS) plus 35 basis points. Investor appetite was strong from the outset, with orders exceeding £1.5 billion including interest from Joint Lead Managers (JLMs).
“Investor demand was strong from the outset, with high-quality orders surpassing the GBP 1.5 billion mark (including JLM interest) by 10.30am UKT,” the bank stated.
The bond, the bank stated, offered a fixed annual coupon of 3.750% and an annual yield of 3.835%. The re-offer spread stood at +15.2bps versus the UK Treasury 0.5% January 2029 benchmark.
More details on the transaction
Investor allocation data shows strong participation from bank treasuries, which accounted for 66% of total allocations, underscoring solid institutional support. Central banks and official institutions took up 26% of the issuance, reflecting the bond’s appeal to sovereign and policy-driven investors.
Fund managers and other investors accounted for the remaining 8%, providing additional diversification to the investor base. The bond was issued in global format (SEC-exempt) with settlement scheduled for 14 January 2026 and maturity on 14 January 2029.
Why this matter
The successful £1 billion issuance highlights AfDB’s ability to access deep liquidity in the sterling market amid favourable funding conditions.
It also demonstrates strong confidence from global investors in the Bank’s credit quality and funding strategy.
For AfDB, the transaction enhances funding flexibility, broadens its investor base, and supports its mandate to finance development projects across Africa at competitive costs.
What you should know
AfDB is one of Africa’s leading multilateral development finance institutions, with a long-standing presence in international capital markets.
The Bank holds top-tier credit ratings of Aaa/AAA/AAA, all with stable outlooks.
In June 2025, Fitch Ratings affirmed AfDB’s Long-Term Issuer Default Rating (IDR) at ‘AAA’ with a Stable Outlook.
The transaction extends AfDB’s GBP yield curve and represents its largest-ever sterling bond issuance.
In 2023, AfDB issued a $2 billion 5-year Global Benchmark bond due on March 14, 2028, marking its first bond issue of the year.
The bond drew an order book of more than $3.5 billion from 95 investors, including Central Banks and Official Institutions.
