The West African Development Bank (BOAD) has raised €1bn through a 15-year bond issuance on the international capital market, marking the longest euro-denominated benchmark bond ever issued by an African multilateral development bank (MDB).

The issuance drew overwhelming investor interest, attracting a record order book of €2.7bn, or nearly three times the offer size.

This strong demand enabled the bank to tighten its spread by 35 basis points and achieve a competitive 6.25 per cent coupon, underscoring investor confidence in both BOAD’s credit quality and the long-term growth prospects of the West African Economic and Monetary Union (WAEMU).

According to the bank, the proceeds from the issuance will be channelled into priority, high-impact projects across the eight WAEMU member countries, consistent with its mandate to promote sustainable economic development in the region.

The 15-year maturity is designed to align with the long-term nature of these infrastructure and development investments.

Commenting on the transaction, BOAD President Mr Serge Ekue described the issuance as a strong validation of the institution’s creditworthiness and financial model.

“This deal is 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 €1bn bond with a 15-year maturity further strengthens our capacity to finance the sustainable development of our member countries,” he said.

Ekue also commended the banking syndicate, comprising BNP Paribas, J.P. Morgan, Natixis, and SMBC Nikko, and the legal advisers for their crucial roles in executing the transaction.

He expressed gratitude to the bank’s shareholders and partners for their continued confidence and support.

The issuance achieved remarkable geographic and investor diversification.

Investors from the United Kingdom and Ireland accounted for 49 per cent of allocations, followed by the DACH region (Germany, Austria, and Switzerland) with 23 per cent, the United States (13 per cent), the rest of Europe (10 per cent), the Middle East (4 per cent), and Asia (1 per cent).

By investor type, asset managers dominated participation with 74 per cent, while hedge funds accounted for 14 per cent, banks and private banks 7 per cent, pension and insurance funds 3 per cent, and central banks 1 per cent.

Market analysts say the successful pricing of the bond reinforces BOAD’s standing as a credible and resilient issuer in international capital markets.