The African Development Bank (ADB) has issued a one-billion-dollar global bond in the international capital markets. The transaction, a five-year bond maturing on August 1, 2008, was lead managed by Goldman Sachs, HSBC and Lehman Brothers.
This offering is ADB's largest public bond issue in the international capital markets and builds on the success of the last year's $500 million global bond which had marked the return of ADB to the global capital markets.
The issue was launched following extensive investor meetings and the size and timing is based on feedback received while ensuring that ADB's funding targets are met.
The size of the bond ensures liquidity, and consequent participation by key investors, while the timing reflects current investor focus on diversifying their portfolios with rare high quality credits. The transaction has enhanced investor appreciation of the Bank's strong credit story, thereby enabling the Bank to remain the most cost-efficient provider of resources into Africa.
ADB is a development finance institution in Africa dedicated to combating poverty and improving the lives of people in the continent and engaged in the task of mobilizing resources toward the economic and social progress of its regional member countries. Its shareholders include the 53 countries in Africa and 24 non-African countries from the Americas, Asia and Europe.
As part of its mission, the Bank is at the forefront of various continent wide initiatives including the African Union, the Highly Indebted Poor Country Initiative (HIPC), NEPAD and recently the Water Facility. Under the leadership of Omar Kabbaj who became President in August 1995, the Bank has undertaken major institutional and financial reforms, including a general capital increase, to strengthen its risk bearing capacity and effectively deliver on its mission of poverty alleviation and promoting economic growth in the continent. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
