Global investors accepted the first bond issue with sustainable development priorities for the West African Development Bank (BOAD) (Sustainability Bonds).
This 12-year issue of EUR 750 million ($902) attracted more than 260 investors worldwide (40 percent from the United Kingdom, 40 percent from Europe, 17 percent from the United States, 2 percent from Asia, and 1 percent from the Middle East), including 75 percent of fund managers and 21 percent of institutional investors (banks, insurance companies and pension funds). The problem 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.