Poised to achieve one of the reasons for its existence, the Banque Ouest Africaine de Développement (BOAD), or West African Development Bank, the common development finance institution of the member countries of the West African Monetary Union (WAMU), on Tuesday said it has successfully raised EUR 1 Billion with a 15-Year maturity on the International Capital Market.
The deal, it said in a statement, represents an important milestone for the continent’s multilateral development banks (MDBs), constituting the longest euro-denominated benchmark bond ever issued by an African MDB.
Article 2 of BOAD’s Articles of Association includes promoting the balanced development of member countries, and fostering economic integration within West Africa by financing priority development projects.
The deal drew strong investor interest, generating a significant EUR 2.7 billion order book, a robust appetite enabled a 35-basis point spread tightening, resulting in a high yield coupon of 6.25%.
The success of the issuance, it added, reflects investors’ high level of confidence in BOAD’s strong credit rating and the growth opportunities of the West African Economic and Monetary Union (WAEMU).
This is further illustrated by the high quality and diversity of the final allocation: a strong European presence, with investors from the United Kingdom and Ireland accounting for 49% of the allocation, followed by the DACH region (23%), the United States (13%), the rest of Europe (10%), the Middle East (4%) and Asia (1%). As per investor type, asset managers represented 74% of the allocation, hedge funds 14%, followed by banks and private banks 7%, pension funds/insurers 3%, and central banks 1%.
This deal, it stressed further, represents an important milestone for the continent’s multilateral development banks (MDBs), as it constitutes the longest euro-denominated benchmark bond ever issued by an African MDB.
Proceeds will be allocated to priority high-impact projects across WAEMU. The exceptional 15-year maturity is well aligned with the nature of these investments—essential for the long-term development of member economies—and fully consistent with the Bank’s mission and the goals of its strategic plan.
Commenting on the deal, Serge Ekue, President of BOAD, described it as “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. This historic EUR 1 billion bond with a 15-year maturity, further strengthens our capacity to finance the sustainable development of our member countries. I would like to acknowledge the crucial role of the banking syndicate—BNP, J.P. Morgan, Natixis and SMBC—as well as the legal advisers, in making this landmark deal successful. I would also like to thank our shareholders and partners for their unwavering support to our mission”.
