BOAD raises €750m from international investors for sustainable development projects

Wednesday, 27 January 2021 13:05
BOAD raises €750m from international investors for sustainable development projects

(Togo First) - The West African Development Bank’s (BOAD) first sustainable development bond issue on the international market was successful. Last week, the Bank issued a statement announcing the news. 

According to the latter, the operation “recorded a huge success for international investors.” In detail, around 260 asset managers, banks, insurers, and various pension funds from the UK, US, Europe, and the Middle East subscribed to the 12-year bond. Overall, €4.4 billion was mobilized in the process, thus nearly six times the amount the BOAD was seeking (€750 million). Proceeds will serve to reinforce the board's investment capacities in key sectors like agriculture, food security, renewable energies, basic infrastructure, health, education, and social housing. 

The interest rate for the bond is 2.75%, slightly above the average on the European market. This is the lowest rate the BOAD ever had on the international market, quite “sympathetic,” especially given that the regional entity is rated BBB by Fitch and Baa1 by Moody’s since 2015. 

This is the first operation launched by the BOAD under the supervision of its new president Serge Ekue, who was appointed last August. Lauding the bond’s performance, Ekue declared: “We are encouraged by the amazing response we received from investors. The very high quality of the order book and the significant level of oversubscription attest investors' support for the Bank's vision and their confidence in the growth and prosperity prospects of the WAEMU zone.”

It is worth noting that the bond falls under the Djoliba strategic plan, going from 2021 to 2025. 

Klétus Situ (intern)

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