- Record €2.7 billion demand underscores investor confidence in WAEMU
- Longest euro-denominated bond by an African development bank
LOMÉ, TOGO – The West African Development Bank (BOAD) has achieved a historic milestone with a €1 billion, 15-year Eurobond – the longest ever issued by an African multilateral lender in euros.
The bond sale drew a record order book of €2.7 billion, prompting the spread to tighten by 35 basis points and producing a 6.25% coupon. The strong investor appetite reflects faith in BOAD’s creditworthiness and in the growth prospects of the West African Economic and Monetary Union (WAEMU).
Strong international backing
European investors accounted for the bulk of demand, with 49% of allocations coming from the UK and Ireland, followed by the DACH region (23%), the United States (13%), the rest of Europe (10%), the Middle East (4%) and Asia (1%).
By investor type, 74% went to asset managers, 14% to hedge funds, 7% to banks and private banks, 3% to pension and insurance funds, and 1% to central banks.
The proceeds will finance high-impact projects across WAEMU member states, supporting the Bank’s mission of sustainable growth and regional integration.
“This deal is more than a financial achievement; it is a clear recognition of BOAD’s creditworthiness and business model,” said Serge Ekue, President of BOAD. “Above all, it strengthens our resolve to extend what can be achieved in a challenging environment.”
Ekue added that the bond “further strengthens our capacity to finance the sustainable development of our member countries,” expressing gratitude to lead arrangers BNP Paribas, J.P. Morgan, Natixis, and SMBC, and to BOAD’s shareholders “for their unwavering support.”
A benchmark for African credit
Financial analyst Dr Chika Okonkwo described the issuance as “a vote of confidence in West Africa’s macroeconomic resilience.”
“To secure €1 billion with a 15-year tenor in today’s risk-sensitive environment tells investors that the region’s institutions are not only surviving but strengthening,” Okonkwo told reporters.
He said the transaction could reduce risk premiums for other regional borrowers, such as governments and corporations in Senegal, Benin, and Côte d’Ivoire, allowing them cheaper access to global capital.
“It extends the yield curve—giving investors a clearer benchmark for West African credit risk. This could encourage longer-dated infrastructure financing, a vital component for sustainable growth,” he added.
A turning point for African issuers
The success of BOAD’s deal comes at a time of volatile global credit markets, where rising interest rates have kept many African issuers sidelined. Analysts say the oversubscription shows investors still view premium African quasi-sovereign notes as attractive amid tightening spreads.
With its rare 15-year tenor, BOAD’s bond extends the WAEMU yield curve and sets a new benchmark for regional issuers with long-term development goals. The pricing, reportedly within guidance, also highlights investor confidence in BOAD’s solid fundamentals and strong shareholder support.
Market watchers believe the sale could ease borrowing costs for West African governments and corporates, unlocking new opportunities for infrastructure funding. It also signals a cautious but steady re-entry of African borrowers into global capital markets after a prolonged pause driven by high global rates and a strong US dollar.
“This is more than a bond issue,” Okonkwo said. “It’s a message that African development institutions can still command global investor trust, even in turbulent times.”
