AfDB hybrid capital note could launch before end-November

The African Development Bank (AfDB) could issue its debut hybrid bond of between $500 billion and $1 billion before the end of the month if market conditions are favorable, the bank’s acting treasurer said.

AfDB is set to become the first multilateral lender to issue a perpetual hybrid bond – a deeply subordinated, debt-like equity instrument that will have a lower credit rating than the lender’s AAA-rated bonds.

“We have been ready to issue since the end of September…Unfortunately, market conditions have not been ideal and it is very important for us to get this transaction right. This sets the tone for the next transactions,” the bank’s acting treasurer Omar Sefiani told Reuters. .

Sefiani said the bond could be issued before the end of November if financial market conditions continue to improve