TDB’s lowest-cost-ever global Eurobond is 3.3X oversubscribed
TDB’s senior unsecured 5-year USD 500mn Eurobond issued this past May 16th, makes history as TDB’s lowest-cost-ever global Eurobond. With a reoffer yield of 5.000% and a 4.875% coupon, the bond was oversubscribed 3.3 times, and closed with an order book of USD 1.65bn.
With a 50bp tightening throughout the book building process on a yield basis, TDB achieved a rare negative new issue premium, a remarkable achievement given the current rising interest rate environment.
Citi, Commerzbank, Emirates NBD Capital, MUFG, SMBC Nikko, and Standard Chartered Bank were the Joint Lead Managers on this transaction.
TDB’s ratings were upgraded to investment grade by Moody’s and Global Credit Ratings (GCR) in 2017, a testament to TDB’s quality growth, and driver of the growing appetite of global investors for TDB opportunities.
A diverse and high-profile group of institutional investors were attracted from several regions of the world, including Europe, US Offshore, East Asia, the GCC sub-region and Africa. This followed intense road shows to several financial centres, led by Admassu Tadesse, President and Chief Executive, and David Bamlango, General Counsel and Senior Executive.
TDB has a successful track record of issuing bonds within Africa and other international markets. Its previous issuances in the Eurobond market date back to 2010, 2013 and 2017, the last one of which gained the Bank entry to the JP Morgan Index of EM Bonds.
With this latest Eurobond, on a reoffer spread basis, TDB managed to achieve a 57.9bp tighter pricing compared to its previous Eurobond transaction in 2017.
Established in 1985, the Eastern and Southern African Trade and Development Bank (TDB) is a multilateral, treaty-based development financial institution, with assets approaching USD 6 bn. The Bank’s mandate is to finance and foster trade, regional economic integration and sustainable development through trade finance, project and infrastructure finance, asset management and advisory services.