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