Economy
AfDB Raises 2.5 Billion US Dollars via Global Bond Issuance
BirrMetrics · 5 hours ago · Read the Full Story on BirrMetrics
AI SUMMARY
The African Development Bank raised 2.5 billion US dollars through a global bond issuance that drew heavy investor demand as African economies seek development financing.
- The African Development Bank raised 2.5 billion US dollars through a global bond issuance priced on October 21, 2026.
- The issuance drew 4.8 billion US dollars in investor orders, making it 1.92 times oversubscribed.
- The bond carries a fixed annual coupon of 4.875 percent and matures on January 18, 2030.
- The AfDB currently supports 27 projects in Ethiopia with a combined portfolio of about 1.3 billion US dollars.
- Public sector operations account for 93 percent of the Bank's Ethiopia portfolio, while private sector investments account for seven percent.
- The African Development Fund approved a 214.47 million US dollar package for the South Sudan-Ethiopia-Djibouti transport corridor, with Ethiopia receiving 181.5 million US dollars in grants.
- The Bank approved up to 110 million US dollars in July 2026 for the 300-megawatt Aysha Wind Project in the Somali Region.
- The proceeds from the latest bond are allocated to the Bank's general funding operations rather than being earmarked as new financing for Ethiopia.
- Ethiopia's external debt service absorbed 26.3 percent of government revenue in the 2024/25 fiscal year.
- The AfDB holds top credit ratings from Moody's, S&P, Fitch, and Japan Credit Rating Agency, enabling it to borrow on favourable terms.
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