AfDB prices EUR 1 billion 5-year social benchmark due 2031
African Development Bank priced a EUR 1 billion 5-year social bond at 3.500% coupon, due October 2031, with proceeds for eligible social projects in Africa.
The story in focus
The African Development Bank priced a EUR 1 billion 5-year social benchmark bond on 14 October 2026, carrying a 3.500% annual coupon and maturing 21 October 2031. Proceeds will finance eligible social projects under the bank's Sustainable Bond Framework, aimed at sustainable economic development and social progress in Africa.
- The bond carries a 3.500% annual coupon and a re-offer yield of 3.562%, pricing at Midswaps +10bps.
- Final orderbooks exceeded EUR 1.75 billion, including EUR 200 million in joint lead manager interest.
- Investor allocations were led by banks (40%) and central banks/official institutions (38%), with Europe ex-UK at 44% and the UK at 31%.
Financing terms and demand
The African Development Bank priced the EUR 1 billion 5-year Social Benchmark on 14 October 2026, with settlement on 21 October 2026 and maturity on 21 October 2031. The notes carry a 3.500% annual coupon and a re-offer price of 99.721%, equivalent to a re-offer yield of 3.562% and a spread of Midswaps +10bps.
Final orderbooks exceeded EUR 1.75 billion, including EUR 200 million of joint lead manager interest. Barclays, Deutsche Bank, HSBC and Natixis acted as joint lead managers.
Investor distribution
Allocations were geographically diversified: Europe ex-UK took 44%, the UK 31%, Asia 15% and Middle East & Africa 10%. By investor type, banks received 40%, central banks and official institutions 38%, and asset managers 22%.
Use of proceeds and programme context
The bank said funds raised will finance eligible social projects under its Sustainable Bond Framework, with the goal of promoting sustainable economic development and social progress in Africa. The issuance is the bank's second EUR Global Benchmark of 2026, following a EUR 1.25 billion 7-year Social Benchmark in June, and brings year-to-date funding to USD 11.5 billion, or 96% of its 2026 borrowing programme.
What will the African Development Bank use the bond proceeds for?
The bank said the funds will finance eligible social projects under its Sustainable Bond Framework, with the goal of promoting sustainable economic development and social progress in Africa.
Sources & further reading
Help keep the record accurate. Send a correction.
