African Dev’t Bank issues Aus $500m bond on Kangaroo market

On Mar 20, 2012

The African Development Bank (“AfDB”) rated (Aaa/AAA) on March 19, 2012 priced a new benchmark Australian Dollar transaction, marking the return of AfDB to the Kangaroo market in over a year.

The A$500 million 10-year fixed rate note due on March 23, 2022, according to the Bank, offers a semi-annual coupon of 5.25%.

“It was priced at 99.119% to yield 5.365% semi-annually. This equates to a spread of 105.75 basis points over the ACGB 5.75% due July 15, 2022; and a spread to AUD semi-quarterly mid swap of +45 bps,” the AfDB said in a statement.

The new benchmark bond was launched with an initial target size of A$200 million, but demand grew quickly to allow for an upsize to A$500mm, making this transaction AfDB’s largest Kangaroo bond outstanding.

The joint lead-managers for this offering are Deutsche Bank, RBC CM and TD Securities, according to the AfDB.

By Ekow Quandzie