The West African Development Bank “BOAD” leads the way in innovation with landmark record-breaking $500 million public hybrid issuance
West African Development Bank “boad” (www.boad.org/en/) continues to successfully issue US$500 million in sustainable mixed bonds in the international capital markets, continuing to lead financial innovation. The deep subordinate tool has a box office of 30 years and its five-year non-call period is 5.9%. Strong investor confidence increased the bond’s tightening by 37.5 basis points, offered from its initial price, resulting in an impressive order for the day, with a final over-certification ratio of 3.4 times.
Prior to this transaction, Boad had already received the Arab Bank for Arab Bank for Arab Bank for Arab Bank in December 2023 and August 2024 respectively in the Arab Bank for Arab Bank for Arab Bank for Arab Bank for Arab Bank for Arab Bank for Africa’s “Badea” and the CASSA deposit “CDP” respectively in December 2023 and August 2024 respectively. For Arab Bank for Arab Bank for Arab Bank, each has acquired $204 million in private assets. Moody’s scored BAA3 and received a 50% equity stake in Moody’s and Fitch, the inaugural public offering enabled Boad to perform better than its $600 million hybrid bond target, The goal is to achieve 95% of its capital increase target, which is part of Djoliba’s strategic plan. The mixed bond issuance enables banks to add additional equity-like capital to their liabilities, thus bringing their stock-to-asset ratio to 41.7%.
The deal attracts important and diversified investors driven by BOAD’s good credit profile and structural characteristics. In terms of geographical distribution, UK investors account for 44% of the distribution, followed by Switzerland 20%, the United States 13%, the Middle East 3%, Asia 2% and the rest of Europe 19%. In terms of investor type, asset managers account for 69% of the allocation, followed by hedge funds 20%, bank/private banks 6%, and pension funds/insurance 5%.
The proceeds will be allocated to BOAD’s sustainable bond framework for financing or refinancing qualified green and social projects, thereby strengthening the bank’s commitment to climate action and social progress across the West African Economic and Monetary Union (WAEMU) region. The deal strengthens the capitalization of BOAD and accelerates the goals of its Djoliba strategic plan, further consolidating its role as a major driver of sustainable economic growth and a major driver of improving living standards in West Africa.
Mr. Serge Ekué, President and Chairman of the Board, said: “This groundbreaking deal demonstrates investor confidence and highlights BOAD’s commitment to innovation, a major driver of development. By mobilizing additional funding, we are strengthening the projects we provide influence to our member states , and therefore promote sustainable growth and economic resilience. I sincerely thank our consultants Rothschild & Co and Galite, as well as BNP Paribas, Sociétégénérale, HSBC, JP Morgan and SMBC. ”
Distributed by Apo Group on behalf of the West African Development Bank (BOAD).
About Boad:
The Bank for Development in West Africa (BOAD) is a common development financial institution in the member states of the West African Monetary Union (WAMU). It is an international public institution whose purpose is to promote balanced development of its member states and promote economic integration within West Africa, as provided in Article 2 of its constitution. It has been recognized by three climate financing facilities (GEF, AF, GCF). Since 2009, Boad has served as an observer for the IFCC and has actively participated in discussions on the design of the international climate financial system. It has been the site of the first Regional Cooperation Centre (RCC) on Clean Development Mechanism (CDM) since January 2013, with the aim of providing direct access to governments, non-governmental organizations and the private sector in the identification and development of CDM projects. support. As of October 15, 2023, the bank has been co-chaired by Bancoldex, the Colombian Commercial and Export Development Bank, the International Development Finance Club (IDFC), which brings together 27 national, regional and multilateral development banks.
