AfDB raises $2.5 billion in global bond as orders hit $4.8 billion

The African Development Bank (AfDB) has raised $2.5 billion through a three-year global benchmark bond after investor orders reached $4.8 billion, nearly twice the amount issued.

The bank made this known in a statement posted on its website.

The bond, priced on October 21, 2026, matures on January 18, 2030, and carries a fixed coupon of 4.875%.

It marks the Bank’s third US dollar benchmark issuance of the year, following a $1 billion 10-year bond in January and a $2 billion five-year bond in February.

The AfDB priced the bond at a spread of 28 basis points above SOFR mid-swaps, two basis points tighter than its initial guidance of 30 basis points, reflecting strong investor demand.

Interest exceeds $3.7 billion

The AfDB announced the transaction on October 20, 2026, with initial price guidance of approximately 30 basis points above the Secured Overnight Financing Rate (SOFR) mid-swaps.

• By 8:10 a.m. UK time the following day, AfDB said indications of interest had exceeded $3.7 billion as the order book formally opened.
• The Bank subsequently set the spread at 28 basis points above SOFR mid-swaps, two basis points below the initial guidance. The final order book closed at $4.8 billion, including $50 million in joint lead managers’ interest.
• The bond was priced at a re-offer yield of 4.933% and a price of 99.837%, with a fixed coupon of 4.875% payable semi-annually. Settlement is scheduled for November 2, 2026.

The transaction uses the US Treasury security maturing on October 15, 2029, as its benchmark, with the bond priced at a spread of 8.7 basis points above the reference security.

AfDB expands international borrowing programme

The latest dollar issuance follows the Bank’s $1 billion 10-year benchmark bond in January and $2 billion five-year benchmark bond in February 2026.

• In January, the AfDB also issued a £1 billion three-year global benchmark bond due in January 2029, marking its return to the sterling debt market.

The Bank’s international bond issuances form part of its funding programme to support its operations and development priorities across Africa.

Nigeria reviews $6.2 billion AfDB project portfolio

Separately, Nigeria and the AfDB have agreed to review the country’s $6.2 billion project portfolio to identify implementation challenges, accelerate project delivery and align ongoing operations with the Federal Government’s priorities.

• The review is intended to address bottlenecks affecting project execution and improve the delivery of development initiatives supported by the Bank in Nigeria.
• 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.

AfDB is one of Africa’s leading multilateral development finance institutions, with a long-standing presence in international capital markets.