The African Development Bank has returned to the UK debt market with a £1 billion three year global benchmark bond due in January 2029, setting a new record for its largest sterling issuance to date.
The bond was priced amid strong market conditions and attracted heavy interest from global investors, according to details released by the bank on Wednesday. Initial price guidance was set at SONIA mid swaps plus 35 basis points, but demand quickly exceeded expectations, with orders crossing £1.5 billion within hours of book opening.
The News Chronicle understands that the strength of demand allowed AfDB to tighten pricing and secure competitive funding terms, reinforcing its standing among top rated multilateral lenders. The bond carries a fixed annual coupon of 3.75 percent and was re offered at a yield of 3.835 percent, reflecting a spread of about 15 basis points over the UK government benchmark for January 2029.
Allocation data showed strong institutional backing, with bank treasuries taking about two thirds of the issuance. Central banks and official institutions accounted for over a quarter, while asset managers and other investors made up the balance, delivering a well diversified investor mix.
Settlement is scheduled for January 14, 2026, with maturity on January 14, 2029. The transaction strengthens AfDB’s funding flexibility, deepens its sterling yield curve and underscores sustained investor confidence in the bank’s triple A credit profile as it continues to mobilise capital for development financing across Africa.
