TDB Breaks New Ground with Benchmark-SizedEurobond Issuance

Posted on: June 21st, 2018

The Trade and Development Bank (TDB), has a successful track record of issuing bonds within Africa and other international markets.
TDB is a regular issuer in the global capital markets. Its previous issuances in the Eurobond market date to 2010 and 2013. In March 2017, the Bank issued a benchmark sized transaction of USD 500 million that gained entry to the JP Morgan Index of EM Bonds. The transaction was well received by the market by being oversubscribed 4.4 times at USD 2.2 billion, the lowest ever price in TDB’s history.
The price contraction dropped to 5.6% against 6.3% for its 2013 issuance. The order book for TDB’s bond was of high quality, highlighting the Bank’s strides in its credit profile and ratings. The order book was well represented across the geographies of Europe, Asia, and the Middle East; as well as by investor types of private banks, and fund managers.
Alongside the issuance of the Eurobond, TDB also embarked on a Liability Management Exercise (LME) through a Cash Tender for its Eurobond maturing December 2018. This exercise was well received since the target acceptance amount was USD 100 million and the market tendered USD 180 million.
It is worth noting that the success of this issuance and LME comes within a context of rising interest rates, and volatility in international markets.
With a target amount USD 150 million, the market again responded with an oversubscription to USD 300 million circa. TDB closed the transaction at USD 200 million on consolidated basis with its March Issuance bringing its total Issuance size to USD 700 million, at an average coupon of 5.41 percent per annum.