The Arab Bank for Economic Development in Africa (BADEA), with a rating of ‘Aa2/Positive Outlook’ (Moody’s), ‘AA/Positive Outlook’ (S&P), and ‘AAA/Stable Outlook’ (JCR), has successfully made its debut on the international financial market by completing an inaugural fundraising operation of 500 million euros under a social label with a maturity of 3 years, a yield rate of 3.806%, and a coupon of 3.75%.
This operation, the first since its establishment 50 years ago, generated strong enthusiasm with a final order book of more than 1.2 billion euros from over 50 high-quality investors based in more than 27 countries across 4 continents. After the transaction announcement on the morning of January 18, subscription orders exceeded 1.5 billion euros within a few hours. His Excellency Dr. Fahad Aldossari, Chairman of the Board, stated, “We are particularly proud of the way we were received by the market for this inaugural transaction. This reflects the confidence investors have in BADEA for both its financial strength and its strategic directions. The new dynamic of accessing financial markets will complement the historical support from shareholders for the bank’s financing – thus consolidating its role as a major player in Arab-African economic cooperation.”
His Excellency Dr. Sidi Ould Tah, President of the Bank, added, “Our inaugural issue was very well received by investors around the world. We are grateful to the investor community for the trust placed in BADEA as it celebrates its 50th anniversary. This is just the beginning of a long presence on the financial markets to catalyze the necessary resources for priority sectors in Sub-Saharan Africa, with a particular focus on social impact.” The funds raised will be used to finance eligible projects in accordance with the Bank’s Sustainable Financing framework. The transaction was led by Afreximbank, Citi, Deutsche Bank, J.P. Morgan as Global Coordinators, and Emirates NBD Capital, Société Générale Corporate & Investment