The African Development Bank (AfDB) has issued a three-year bond targeting to raise $2 billion (Sh200 billion), with the cash intended for on-lending to its members including Kenya, Business Daily Africa reported.
It is the regional lender’s first public market deal of 2018 and is to be redeemed on March 22, 2021. AfDB is rated the highest quality ratings by Moody’s Investor Service, S&P, and Fitch of Aaa, AAA, and AAA respectively.
The issue follows the $2 billion five-year bond priced in November 2017, and is in line with the bank’s strategy of issuing larger size, more liquid benchmark transactions.
“The global benchmark was very well oversubscribed, with an order book in excess of $4.25 billion (Sh425 billion). More than 80 investors participated in the transaction, including six that were new to the bank, demonstrating that the deal was well placed across diversified geographies and investor type,” AfDB said in a statement.