Afreximbank acts as Joint Global Coordinator on BADEA‘s first €500M Social Bond

The African Export-Import Bank (Afreximbank) has successfully acted as a Joint Global Coordinator for the Arab Bank for Economic Development in Africa's (BADEA) first €500m RegS-only senior unsecured social bond. The issue is under BADEA’s new Euro Medium Term Note (EMTN) programme on the London Stock Exchange, which will provide developmental financing to 44 non-Arab Sub-Saharan African countries under the issuer’s newly established Sustainable Finance Framework with a focus on essential services (healthcare/education/MSME financing), food security, employment generation and affordable housing sectors.

The 3-year bond, which was 3.0x oversubscribed, was priced at 100bps over EUR mid-swap rate to yield 3.806% (annual fixed coupon 3.750%). The issue's popularity resulted in strong interest from high-quality institutional investors, including central banks, DFIs, fund managers, and commercial banks across Africa, the Middle East, Europe, and the UK and US offshore accounts.