Global investors welcomed the West African Development Bank’s (BOAD) first bond issue with sustainable development objectives (Sustainability Bonds).
This issue amounting to €750 million ($902) with a 12-year maturity, attracted more than 260 investors across the world (40% from the United Kingdom, 40% from Europe, 17% from the United States, 2% from Asia, and 1% from the Middle East), including 75% asset managers and 21% institutional investors (banks, insurance companies and pension funds). The issue was oversubscribed six times, with total demand amounting to €4.4 billion.
The bonds carry a coupon of 2.75% and 300 basis points spread over the average market rate, 12-year MID-SWAP Euro rate, which represented the lowest rates achieved by BOAD in the global financial markets.
The issue is part of a “Sustainability Bond Framework”, calling on BOAD to finance projects with a high social and environmental impact. The proceeds will reinforce BOAD’s capacity to invest in priority sectors such as agriculture and food security, renewable energy, basic infrastructure, health, education and social housing.
In line with the vision developed in the strategic plan DJOLIBA, this operation follows the appointment in August 2020 of Serge Ekue, former director of financing and investment activities for Natixis in London, as President of the West African Development Bank.
“We are strengthened by the tremendous feedback we received from investors. The very high quality of the order book and the significant level of oversubscription attest to the investors’ support for the Bank’s vision and their confidence in the WAEMU region’s prospects for growth and prosperity”, said Ekue.