AfDB issues Singapore dollar bond

The African Development Bank has completed its inaugural Singapore dollar financing.

The African Development Bank (AfDB) has issued a S$129 million three-year note via lead manager Standard Chartered. The issue is the first time the borrower has tapped the Singapore market and represents an important diversification from its traditional sources of funding.

The issue was oversubscribed and increased form its original intended size of $100 million. The note yields 2.64% (about 10bp sub Libor) and comes from the AA+/AAA-rated AfDB's euro MTN program. Proceeds will be swapped into US dollars for general funding.

Speaking about the issue, treasurer of the AfDB Arunma Oteh praised the Singaporean market. "We are impressed with the ease of issuance as well as with the level of sophistication of investors here. We look forward to tapping the Singapore market for future financing."