By Ayomide Otitoju
The West African Development Bank (BOAD) has reached a major milestone with the successful completion of a historic €1 billion bond issuance on the international capital market, featuring a 15-year maturity — the longest euro-denominated benchmark bond ever issued by an African multilateral development bank (MDB).
The issuance drew overwhelming investor demand, generating a record €2.7 billion order book and allowing for a 35-basis point spread tightening, with a final coupon rate of 6.25%.
According to BOAD, the strong response demonstrates investor confidence in the bank’s credit strength and the long-term growth prospects of the West African Economic and Monetary Union (WAEMU). The final allocation reflected broad international participation, led by investors from the United Kingdom and Ireland (49%), followed by the DACH region (23%), the United States (13%), the rest of Europe (10%), the Middle East (4%), and Asia (1%).
By investor type, asset managers accounted for 74% of allocations, hedge funds 14%, banks and private banks 7%, pension funds and insurers 3%, and central banks 1%.
Proceeds from the bond will be directed toward priority, high-impact projects across WAEMU, supporting long-term investments aligned with BOAD’s strategic mission for sustainable regional development.
Commenting on the achievement, BOAD President Serge Ekue said: “This deal is more than a financial achievement; it is a clear recognition of BOAD’s creditworthiness and business model. Above all, it strengthens our resolve to extend what can be achieved in a challenging environment.”
Ekue also expressed appreciation to the banking syndicate—BNP Paribas, J.P. Morgan, Natixis, and SMBC—as well as the legal advisers, shareholders, and partners who contributed to the success of the landmark transaction.
