AfDB launches Kangaroo bond

AfDB launches Kangaroo bond

Published: March 20, 2012

Bank secures US$524.9mn from issuance.

The African Development Bank (AfDB) has launched a benchmark Australian dollar-denominated bond to raise A$500mn (US$524.9mn).

High demand for the 10-year Kangaroo bond, which has a 5.25% coupon, allowed the bank to raise more than double the A$200mn it initially targeted.

There were 18 investors involved in the transaction, including insurers and banks. Most investors were in Asia (70%), with Australian investors accounting for 28% of the issuance. The rest were from Europe.

The bond’s joint-lead managers were Deutsche Bank, RBC Capital Markets and TD Securities.