BOAD welcomes outstanding achievement in a debut Eurobond

The West African Development Bank (BOAD) on Wednesday welcomed a successfully issue on 28 April 2016 of a debut US$750 million five-year bond loan in the international capital market that has strengthened its operational capacity in serving the regional economy.

In a release disclosed by the head-quarter in the capital Lomé, the community financial institution said the offering attracted strong demand in recording 180 subscriptions totaling US$1.8 billion.

Selected orders were from USA amounted to 44pct, against 27 pct from Europe excluding UK that stands alone with 18 pct, whereas Asia has come around with 9pct and the rest of the world with 2 pct, according to the release.

BNP Paribas, Deutsche Bank, J.P. Morgan and Standard Bank acted as joint lead managers and joint bookrunners for the issuance that impressed fund and asset managers represented as they stand with 70 pct of orders, followed by banks (11pct), investment funds (10pct), pension funds and insurance companies (6pct) and other categories (3pct).

“The success of the debut bond issuance reflects the creditworthiness of BOAD”, the leading financing institution within the Uemoa sub-region said in welcoming the outstanding achievement as it has been raising, so far, funds from the regional capital market.

The bank underscored that the access to the international capital market is one of the “key directions” contained in its 2015-2019 strategic plan and enables the institution “to diversify and better secure its sources of funding”.

It issued its first bond loan in 1993 in the regional capital market and floated, in the first quarter of 2016, a bond loan in an amount of 78.2 billion Cfa francs.

The West African Development Bank (BOAD) raised so far 991.05 billion Cfa francs, and stands thereby as the first non-sovereign issuer in the regional capital market.