BADEA prices $1bn five-year Eurobond
What's the deal? The Arab Bank for Economic Development in Africa (BADEADealroom has a profile for this one. Try Dealroom →) has priced a $1 billion five-year Eurobond, drawing strong demand from global investors.
The senior, unsecured bond carries a 4.75% fixed coupon, paid semi-annually, with a yield of 4.776% and a reoffer price of 99.886.
Credit Agricole CIBDealroom has a profile for this one. Try Dealroom →, Deutsche BankDealroom has a profile for this one. Try Dealroom →, and JP MorganDealroom has a profile for this one. Try Dealroom → acted as joint global coordinators, with LazardDealroom has a profile for this one. Try Dealroom → as financial advisor.
Why now? Investor appetite was strong enough to tighten the spread to SOFR +80bps, down from initial pricing thoughts in the +88bps area.
The orderbook peaked above $1.55 billion before settling at $1.5 billion at final allocation.
That oversubscription signals confidence in BADEA, which holds top-tier ratings: Aa1 from MoodyDealroom has a profile for this one. Try Dealroom →'s, AA+ from S&PDealroom has a profile for this one. Try Dealroom →, and AAA from JCRDealroom has a profile for this one. Try Dealroom →.
The signal: As a mature multilateral lender backed by 18 sovereign states, BADEA's ability to tighten its spread to SOFR +80bps on a $1.5 billion orderbook reflects how triple-A-rated development finance institutions are increasingly trusted vehicles for channelling Arab capital into African growth. The heavyweight syndicate — Credit Agricole CIB, Deutsche Bank, and JP Morgan, with Lazard advising — underscores the institutional confidence behind the issuance.
Read more: Zawya
Image credit: International Trade Centre
