January 13, 2017/AfDB
Bond-Terms-Summary
Transaction Highlights:
- On Tuesday, December 6, 2016, the African Development Bank (AfDB) launched its inaugural Kangaroo Green Bond. This transaction follows successful outings in USD and SEK Benchmark formats.
- The 15-year maturity, maturing 15 December 2031, marks an extension of AfDB’s existing Kangaroo curve (June 2026) and represents the longest SSA Kangaroo bond currently in the market.
- The bond was priced at mid-swaps +53 bps, equivalent to a yield of 3.6025% and a spread of 58.25 bps over the ACGB 3.250% April 2029.
- This transaction marks the third Green Bond by an SSA borrower in the Kangaroo market, following 5-year outings by the International Bank for Reconstruction and Development (IBRD) and Kreditanstalt für Wiederaufbau (KFW) in 2013 and 2014, respectively.
- The new bond is AfDB’s sixth Green Bond transaction under its Green Bond framework: http://www.afdb.org/en/topics-and-sectors/initiatives-partnerships/green-bond-program/.
- Nomura was the sole lead manager for the transaction.
“We were very excited to be involved in this landmark transaction in the AUD market and it’s a great way to finish off the year. We have increasing ambitions in terms of climate finance and this was an excellent opportunity to broaden investor support in order to further help the African continent’s gradual transition to green growth.” – Keith Werner, Chief Treasury Officer, African Development Bank
“Following successful Green Bond outings in USD and SEK Benchmark format, the AfDB has now provided a new maturity bucket to SRI investors in the Kangaroo market, with an increasing number of accounts attracted by the lengthening of duration theme. Nomura were delighted to have facilitated this transaction for both the AfDB and SRI investor clients.” – Mark Yeomans, Executive Director, DCM SSA at Nomura.
Bond Terms Summary:
