African Development Bank raises $2.5 billion
By the AFREEQUE newsroom, based on Punch
The African Development Bank has raised $2.5 billion through a three-year dollar bond, which attracted $4.8 billion in orders. The bank set the annual interest rate at 4.875% and cut the initially envisaged spread by two basis points, according to a statement published on its website.
The African Development Bank (AfDB), a pan-African multilateral financial institution, has raised $2.5 billion through a three-year dollar bond. Investors submitted orders totalling $4.8 billion, according to a statement published by the bank.
The bond was priced on 21 October 2026 and will mature on 18 January 2030. Its fixed annual interest rate is 4.875%, while its re-offer yield was set at 4.933%. Settlement of the transaction is scheduled for 2 November 2026.
Investor demand enabled the AfDB to reduce the spread offered above the SOFR benchmark rate, used to set the cost of dollar-denominated debt, from 30 to 28 basis points. The bond was priced at 99.837% of its nominal value.
This is the AfDB’s third benchmark dollar issue in 2026, following a $1 billion 10-year bond in January and a $2 billion five-year issue in February. The bank also borrowed £1 billion for three years in January, according to its statement.
