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AfDB Issues First-Ever SOFR-linked Transaction in Green Bond Market (This Day Live)

AfDB Issues First-Ever SOFR-linked Transaction in Green Bond Market (This Day Live)

The African Development Bank has been rated Aaa/AAA/AAA by Moody’s/S&P/Fitch (all stable) successfully priced a dual-tranche US$ 500 million three-year and US$ 100 million two-year SOFR-linked Green bond, becoming the first issuer to bring to the market a SOFR-linked Green Bond transaction.

The fixed rate tranche, oversubscribed within three hours of formal book opening with the support from high-quality green investors, was priced at mid-swaps (MS) flat, in line with Initial Price Thoughts (IPTs) and providing a very limited new issue premium. The SOFR-linked tranche, the result of a green reverse enquiry , priced at SOFR + 32 basis points (bps) and was placed almost entirely in the hands of green-dedicated investors.

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