MON, OCTOBER 24 2016-The African Development Bank, AfDB, has launched and priced a new US $1 billion 2-year Global benchmark transaction due on the 2nd of November 2018. The announcement of the launch last week Wednesday followed the appointment of three key officers to join the senior management team of the Bank.
The 2-year issue is the fifth USD Global benchmark transaction in 2016 for the rated Aaa (Moody’s) / AAA (S&P) / AAA (Fitch) institution. It is also the first 2-year US dollar benchmark transaction this year.
The Bank said in a press statement that BNP Paribas, Goldman Sachs International, Nomura and TD Securities were mandated as joint-lead managers on the transaction.
According to the Bank, “the African Development Bank decided to take advantage of the supportive market conditions for issuance and a clear execution, following the heavy primary supply in Supranational, Sovereigns and Agencies (SSA) in the 3-year segment witnessed in the previous two weeks.”
The mandate for a new 2-year USD Global benchmark was announced on Tuesday, October 18, 2016, shortly after 2:30 p.m. London time and Initial Price Thoughts (IPTs) of Mid-swaps (MS) +4 basis points (bps) area were released simultaneously for gathering Indications of Interest overnight.
The Bank said the deal met with immediate investor interest and with Indications of Interest in excess of US $600 million, the books were officially opened in the European morning on Wednesday at 8:05 a.m. London time with a price guidance of MS +4bps area, in line with the IPTs.
“On the back of extremely high quality orders and with final demand in excess of US $1.3 billion, the issuer decided to set the deal size at US $1 billion,” the statement said.
The deal was priced at 5 p.m. London time with a re-offer yield of 1.073%, equivalent to a spread of 27.4 bps against the 2-year US Treasury bond CT2 0.750% of September 2018.
Final distribution figures highlight AfDB’s strong penetration across key regions. The high quality order book saw 36 accounts participating, dominated by demand from Central Banks and Official Institutions, who took up the lion’s share of allocation of 73%.
Meanwhile, Amadou Hott, Pierre Guislain and Khaled Sherif have joined the Bank as Vice Presidents in charge of key segments of the bank’s business. Hott is appointed to head the Power, Energy, Climate and Green Growth with effect from 1st November 2016. Hott, Senegalese, is described as a top-notch management executive who brings along twenty years of experience in the private sector that span structured finance, investment banking, infrastructure investments and development of integrated energy solutions. He was the Founder and Chief Executive Officer of the Sovereign Wealth Fund of Senegal, where he is spearheading major infrastructure investments, including energy projects and renewable energy. He is experienced in structuring finance for power and energy projects. He has led several projects in power including the first solar project in Senegal (30 MW) under construction and to be commissioned in three months and Scaling Solar for 200 MW with the first phase of 100 MW and development of 400-600 MW in negotiation with the National Power Utility of Senegal. As an Investment Banker, he advised on various oil and gas and power projects at the ABN Amro Bank in London and at the Millennium Finance Corporation in Dubai.
He also served as the Chief Executive Officer of the investment-banking subsidiary of United Bank for Africa (UBA) PLC, with presence in 20 African countries.
Pierre Guislain also joins the Bank as Vice-President, Private Sector, Infrastructure and Industrialization, with effect from 1st December 2016. He will join the Senior Management Team of the Bank.
Pierre Guislain, Belgian, currently works as Senior Director at the World Bank, where he provides global leadership for the Global Practice on Transport and Information and Communications. He has built an impressive career at the World Bank, spanning more than 30 years. He worked previously as Director for the Investment Climate Department of the International Finance Corporation and the World Bank Group (2006-2014) and Manager of the World Bank Group’s Information and Communications Technology Division (2001-2005).
He currently manages the World Bank’s Global Practice portfolio of $42 billion on transport and information and communications infrastructure.
Khaled Sherif is appointed Vice-President, Regional Development, Integration and Business Delivery, with effect from 1st November 2016. He will join the Senior Management Team of the Bank.
Khaled Sherif, Egyptian, is a highly respected and experienced economist and manager with 25 years of experience within the World Bank, spanning strategic, operational and technical expertise in development and development finance. He comes with deep knowledge and extensive experience in project development, portfolio management and regional operations management.
He rose progressively through the ranks in the World Bank, joined through the Young Professional Program and moved up as Senior Economist, Principal Economist, Lead Economist and Sector Manager for private and financial sector development. He later became the Chief Administrative Officer – the Chief Operations Officer of the World Bank’s Africa Region.