By SCM Staff Writer I Wednesday, October 21, 2025
LAGOS, Nigeria – The West African Development Bank (BOAD) has successfully completed a €1 billion bond issuance with a 15-year maturity, marking a new milestone and setting a record for the longest euro-denominated benchmark bond ever issued by an African multilateral development bank (MDB).
The historic deal on the international capital market drew exceptionally strong demand, evidenced by a record €2.7 billion order book. This robust appetite allowed for a 35-basis point spread tightening, resulting in a final high-yield coupon of 6.25%.
The success is seen as a clear indicator of high investor confidence in BOAD’s credit rating and the growth prospects of the West African Economic and Monetary Union (WAEMU).
The final allocation was characterized by both quality and geographical diversity:
Europe dominated the allocation, with investors from the United Kingdom and Ireland accounting for the largest share at 49%.
The DACH region (Germany, Austria, Switzerland) followed, representing 23% of the total.
The United States took a 13% share.
The rest of Europe accounted for 10%.
The Middle East and Asia represented 4% and 1%, respectively.
In terms of investor type, asset managers were the largest participants, securing 74% of the allocation. They were followed by hedge funds at 14%, and banks and private banks at 7%. Pension funds/insurers and central banks accounted for 3% and 1% respectively.
Strategic Financing for Long-Term Development
BOAD stated that the proceeds will be allocated to priority high-impact projects across WAEMU member countries.
The exceptional 15-year maturity is strategically aligned with the nature of these long-term development investments, consistent with the bank’s mission.
Mr. Serge Ekue, President of BOAD, called the deal “more than a financial achievement,” describing it as a “clear recognition of BOAD’s creditworthiness and business model.”
He added that the financing “further strengthens our capacity to finance the sustainable development of our member countries.”
The banking syndicate for the landmark deal included BNP, J.P. Morgan, Natixis, and SMBC.
