West African Development Bank Secures Record €1 Billion 15-Year Bond to Boost Regional Growth

In a landmark move for Africa’s financial markets, the West African Development Bank (BOAD) has successfully issued a €1 billion bond with a 15-year maturity, marking the longest euro-denominated benchmark bond ever launched by an African multilateral institution. The historic issuance, announced on October 22, 2025, has been hailed as a major step in strengthening the region’s access to sustainable financing.

According to the bank’s statement, the bond received overwhelming investor interest, generating a record €2.7 billion order book—nearly three times the issuance size. This strong demand allowed BOAD to tighten the spread by 35 basis points and offer an attractive 6.25% coupon yield, underscoring global investor confidence in the bank’s financial stability and creditworthiness.

BOAD President Serge Ekue described the bond as more than a financial milestone, calling it a testament to the institution’s growing reputation and resilience. “This deal is a clear recognition of BOAD’s creditworthiness and business model,” Ekue said. “It strengthens our capacity to finance sustainable development across our member countries.” He also commended key banking partners—BNP Paribas, J.P. Morgan, Natixis, and SMBC—as well as legal advisers for their pivotal role in executing the deal.

The bond attracted a wide range of investors, with European investors accounting for nearly half (49%) of total allocations, led by participants from the United Kingdom and Ireland. The DACH region (Germany, Austria, and Switzerland) followed with 23%, while the United States, Middle East, and Asia represented 13%, 4%, and 1% respectively. By investor type, asset managers dominated with 74%, followed by hedge funds (14%), banks (7%), and pension funds/insurers (3%).

BOAD stated that proceeds from the issuance will be directed toward high-impact infrastructure and development projects across the West African Economic and Monetary Union (WAEMU). The successful bond issuance not only enhances BOAD’s capacity to fund sustainable development but also reinforces the region’s position as an emerging hub for long-term, responsible investment in Africa.

source: punch