African Development Bank launches USD 2 billion 5-year 4.375% Global Benchmark due 3 November 2027

African Development Bank launches USD 2 billion 5-year 4.375% Global Benchmark due 3 November 2027

On Wednesday 26 October 2022, the African Development Bank, rated Aaa/AAA/AAA/AAA (Moody’s / S&P / Fitch / Japan Credit Rating, all stable), launched and priced a new USD 2 billion 5-year Global Benchmark due 3 November 2027. This transaction marks the Bank’s second USD Global Benchmark in 2022 following the 3-year USD 1 billion benchmark issued in June, and its first 5-year benchmark issuance since July 2021. The bond pays a coupon of 4.375% with a re-offer yield of 4.458%.

A combination of high inflation and rising rates has changed the landscape for bond issuance over the past few weeks, causing considerable and persistent volatility. While Supranational Sovereign and Agency (SSA) transactions in weeks prior to this trade had shown investor support in the 3-year part of the curve, the 5-year part of the curve remained untested. As the lead arrangers were highlighting potential investor fatigue in the 3-year tenor, the decision was made to announce a 5-year USD benchmark before year-end, and before conditions potentially worsened.

The mandate for a new 5-year USD Global Benchmark was announced on Tuesday 25 October at 12.21pm London time, with Initial Pricing Thoughts released simultaneously at SOFR Mid-swaps plus 51 basis points (bps) area. The deal enjoyed robust investor demand from the outset as Indication of Interest from AfDB’s high quality investor base accumulated at a rapid pace, exceeding USD 1.6 billion overnight (including USD 150 million of Joint Lead-Managers’ (JLM) interest). 

The books officially opened the following morning, Wednesday 26 October at 8.26 am London time, with price guidance unchanged at Mid-swaps + 51bps area. The order book continued to grow through the European morning, with investor demand approaching USD 2.3 billion (including USD 225 million JLM interest) by 9.45am London time, which allowed the Bank to set the spread 1bp tighter at Mid-swaps + 50bps.

With stable market conditions and a robust appetite from high-quality investors for the Bank’s credit, the order book closed in excess of USD 3.3 billion (including USD 225 million JLM interest). The transaction was launched with a size of USD 2 billion and priced at 4.43pm London time priced at Mid-swaps + 50bps, equivalent to a reoffer yield of 4.458% and a spread of 27.31bps vs the on-the-run 5-year US Treasury.

The new issue brings an on-the-run reference point in the 5-year part of the Bank’s USD curve, extending its outstanding curve, and demonstrating its commitment to maintain liquid lines at key benchmark maturities. With the final order book closing in excess of USD 3.3 billion (including USD 225 million JLM interest), and with 83 investors participating, the success of this 5-year transaction is a clear vote of confidence from investors in the Bank’s credit, even amidst the more recent volatile market backdrop.

Investor distribution statistics:

Transaction details:

Issuer:African Development Bank (“AfDB”)
Issuer rating:Aaa / AAA / AAA (Moody’s / S&P / Fitch, all stable)
Amount:USD 2 billion
Pricing date:26 October 2022
Settlement date:03 November 2022 (T+6)
Coupon:4.375 %, Fixed, semi-annual 30/360
Maturity date:03 November 2027
Re-offer price:99.632%
Re-offer yield:4.458% annual
Re-offer spread:SOFR Mid-swaps + 50bps / UST 4.125% 09/27 + 27.31bps
Joint-Lead Managers:BNP Paribas, BofA Securities, Goldman Sachs, HSBC, Nomura
Senior Co-Leads:Standard Chartered and CastleOak Securities
ISIN:US00828EEP07

Source: afdb.org

Original Media Source

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Tanzania Declares End of Marburg Virus Disease Outbreak
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Tanzania today declared the end of Marburg virus disease outbreak after recording no new cases over 42 days since the death of the last confirmed case on 28 January 2025.

The outbreak, in which two confirmed and eight probable cases were recorded (all deceased), was the second the country has experienced. Both this outbreak, which was declared on 20 January 2025, and the one in 2023 occurred in the north-eastern Kagera region.

In response to the latest outbreak, Tanzania’s health authorities set up coordination and response systems, with support from World Health Organization (WHO) and partners, at the national and regional levels and reinforced control measures to swiftly detect cases, enhance clinical care, infection prevention as well as strengthen collaboration with communities to raise awareness and help curb further spread of the virus.

Growing expertise in public health emergency response in the African region has been crucial in mounting effective outbreak control measures. Drawing on experience from the response to the 2023 Marburg virus disease outbreak, WHO worked closely with Tanzanian health authorities to rapidly scale up key measures such as disease surveillance and trained more than 1000 frontline health workers in contact tracing, clinical care and public health risk communication. The Organization also delivered over five tonnes of essential medical supplies and equipment.

“The dedication of frontline health workers and the efforts of the national authorities and our partners have paid off,” said Dr Charles Sagoe-Moses, WHO Representative in Tanzania. “While the outbreak has been declared over, we remain vigilant to respond swiftly if any cases are detected and are supporting ongoing efforts to provide psychosocial care to families affected by the outbreak.”

Building on the momentum during the acute phase of the outbreak response, measures have been put in place to reinforce the capacity of local health facilities to respond to potential future outbreaks. WHO and partners are procuring additional laboratory supplies and other equipment for disease detection and surveillance and other critical services.

Marburg virus disease is highly virulent and causes haemorrhagic fever. It belongs to the same family as the virus that causes Ebola virus disease. Illness caused by Marburg virus begins abruptly. Patients present with high fever, severe headache and severe malaise. They may develop severe haemorrhagic symptoms within seven days.

In the African region, previous outbreaks and sporadic cases have been reported in Angola, the Democratic Republic of the Congo, Ghana, Kenya, Equatorial Guinea, Rwanda, South Africa and Uganda.

Source: allafrica.com

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