AfDB Sets New Benchmark With Record USD 6.4bn Orderbook on 10-Year Global Bond

This marks AfDB’s second 10-year USD benchmark issuance, following its inaugural USD 1 billion deal in June 2025, and its first USD benchmark of the year.

The African Development Bank (AfDB) has kicked off its 2026 funding programme with a landmark transaction, successfully pricing a USD 1 billion 10-year Global Benchmark bond due January 2036 and achieving the largest single-tranche orderbook in the Bank’s history.

Rated Aaa/AAA/AAA by Moody’s, S&P and Fitch, the transaction attracted peak demand of USD 6.4 billion, underscoring deep global investor confidence in the Bank’s credit, strategy, and execution—despite evolving interest-rate expectations.

This marks AfDB’s second 10-year USD benchmark issuance, following its inaugural USD 1 billion deal in June 2025, and its first USD benchmark of the year.

Strong execution drives tighter pricing

Launched on 14 January 2026, shortly after the release of US CPI data, the deal saw strong momentum from the outset. Initial price thoughts were set at SOFR MS +45bps, with demand exceeding USD 3.5 billion by early the next morning.

Robust bookbuilding enabled the Bank to tighten pricing by a total of 4bps, ultimately setting the spread at SOFR MS +41bps, equivalent to 7.8bps over US Treasuries—4bps tighter than its inaugural 10-year USD transaction last year.

The bond was priced with a re-offer yield of 4.214% and a 4.125% fixed coupon, highlighting AfDB’s ability to achieve efficient funding outcomes while navigating volatile global rates.

Broad, high-quality investor participation

The final orderbook comprised over 109 orders, with 37 allocations, reflecting broad geographic and institutional participation. Investor distribution was notably diversified:

• Central Banks and Official Institutions: 51%

• Asset Managers: 23.2%

• Banks: 20.9%

• Other investors: 4.9%

The strong showing from official institutions reinforced AfDB’s standing as a core high-grade issuer in global reserve portfolios.

A signal transaction for 2026 funding markets

The record-breaking orderbook and pricing outcome highlight AfDB’s continued ability to access the USD market at scale, even amid shifting rate expectations. The deal also reinforces demand for high-quality supranational issuers as investors seek stability, liquidity, and duration.

Joint lead managers on the transaction were Bank of America Securities, BNP Paribas, and Morgan Stanley.

Transaction summary

• Issuer: African Development Bank

• Issue size: USD 1,000,000,000

• Format: Global (SEC-Exempt)

• Coupon: 4.125%, Fixed, Semi-Annual (30/360)

• Maturity: 22 January 2036

• Re-offer yield: 4.214%

• Re-offer spread: +41bps vs SOFR MS / +7.8bps vs UST

• Settlement date: 22 January 2026

• ISIN: US00828EFN40

The transaction positions AfDB strongly for the year ahead, setting a high bar for supranational issuance in 2026.