Clifford Chance

Clifford Chance advises African Development Bank on its historic 10.5-year inaugural USD Global Sustainable Hybrid transaction

Global law firm Clifford Chance has advised African Development Bank on the sale of its long-awaited hybrid capital note, the first financing of its kind for multilateral development banks, which are looking for innovative ways to boost their lending. The $750 million perpetual hybrid note has a 5.75% coupon, tighter than the 6.375% guidance. The Notes are issued under African Development Bank's Sustainable Bond Framework 2023.

The African Development Bank is a multilateral institution whose objective is to contribute to the sustainable economic development and social progress of the African countries. This transaction is the first of such bond issuances by a multilateral development bank, marking the African Development Bank’s pioneering role in optimising its balance sheet in line with the G20 Capital Adequacy Framework (CAF) recommendations to boost lending capacity. Hybrid capital is an innovative form of capital which increases sustainable lending capacity.

"We are delighted to have supported African Development Bank with this landmark transaction. We hope that the success of this pioneering transaction provides a blue print for AfDB and other multilateral institutions to expand their capital base and increase the impact of their important work," said partner Paul Deakins, capital markets partner at Clifford Chance.

The capital markets deal team was led by Paul, with the support of senior associate Maria de Elizalde.