In October 2025, the West African Development Bank (BOAD), which serves the eight WAEMU countries, raised €1 billion on international markets — its largest issue to date. The bond, with a 15-year maturity and a 6.25% coupon, marks a milestone in West Africa’s access to global capital.
Investor demand was strong: the deal was about three times oversubscribed, with orders totaling €2.7 billion. In plain terms, investors tried to buy far more than BOAD was offering — a clear sign of appetite for the name. Importantly, the bond was issued in euros, matching the CFA franc’s fixed peg to the euro, which reduces the currency risk that often undermines African sovereign issuers.
Investor Appetite and Deal Structure
According to BOAD’s official release, the final allocation was dominated by asset managers (74%), followed by hedge funds (14%), banks and private banks (7%), pension and insurance funds (3%), and central banks (1%). Geographically, nearly half of the distribution went to UK and Ireland investors (49%), with the DACH region (Germany, Austria, Switzerland) taking 23%, the United States 13%, the rest of Europe 10%, the Middle East 4%, and Asia 1%.
The bond’s 15-year tenor and 6.25% coupon underline both the WAEMU region’s rising profile and BOAD’s strengthened credit standing. The bank holds investment-grade ratings from Moody’s (Baa1) and Fitch (BBB) — a rarity among African issuers.
Why did global investors buy in?
- Currency stability: The CFA franc’s peg to the euro sharply reduces devaluation risk, unlike most African sovereigns.
- Institutional trust: BOAD enjoys a form of preferred creditor status, and uses credit-insurance mechanisms covering about 15% of its loan book.
- Yield premium: At 6.25%, the bond pays far more than most long-dated European debt (typically below 4%), offering equity-like returns from a supranational borrower.
In short, BOAD offered higher returns without the same sovereign-level risks that often deter global investors.
BOAD’s Recent Moves and Credibility
This isn’t a one-off success. Earlier in 2025, BOAD raised $500 million through a hybrid bond, which was oversubscribed about 3.4 times. The deal was innovative for the region: hybrids count partly as equity, helping strengthen BOAD’s balance sheet.
Combined with governance reforms, stronger transparency, and a pipeline of sustainable projects, BOAD has gradually built the reputation needed to compete for long-term international capital.
Comparisons: BOAD, Côte d’Ivoire, AfDB, Nigeria
To understand the deal’s significance, it helps to see how BOAD stacks up against other African issuers in 2025:
- Côte d’Ivoire raised $1.75 billion in March 2025 through an 11-year Eurobond, more than twice oversubscribed. Proceeds refinanced 2028 and 2032 bonds, improving its repayment profile. The yield (≈6.45%) was close to BOAD’s, but for a shorter maturity.
- The African Development Bank (AfDB) raised $500 million in September 2025 with a perpetual hybrid bond (callable after 10 years) at 5.875%. Backed by its AAA/Aaa rating, AfDB achieved an 8x oversubscription — underscoring how its global standing keeps borrowing costs far lower.
- Nigeria is preparing a $2bn+ issuance but faces steep yields — recent long-dated bonds priced between 7.4% and above 8% — reflecting FX instability and fiscal pressures.
| Issuer | Amount | Tenor | Coupon | Oversubscription | Relative Risk |
|---|---|---|---|---|---|
| BOAD | €1B | 15 yr | 6.25% | ~3x | Baa1/BBB supranational, WAEMU |
| Côte d’Ivoire | $1.75B | 11 yr | ~6.45% | >2x | Sovereign, improving profile |
| AfDB Hybrid | $500M | Perp NC10 | 5.875% | ~8x | AAA/Aaa hybrid supranational |
| Nigeria (Planned) | $2B+ | 12-30 yr | 7.38–8.25% | To be confirmed | Sovereign, higher risk, FX issues |
These deals reflect the dynamic interplay of risk, credibility, and investor appetite shaping West Africa’s financial integration with global capital markets.
Critical Risks and Sustainability
Oversubscription makes headlines, but the real test is twofold: who holds the bonds, and how the money is used. With allocations skewed toward asset managers and hedge funds, BOAD may face volatility if markets turn risk-off. And borrowing at 6.25% only makes sense if proceeds finance productive, revenue-generating projects that ensure repayment. Heavy reliance on euro-denominated debt could also slow the development of local capital markets, leaving BOAD exposed to swings in global sentiment.
The Larger Signal
Beyond the transaction itself, the symbolism is striking. An African regional bank has just raised €1 billion for 15 years at investment-grade terms — something that would have seemed unlikely a decade ago.
This suggests that West Africa is no longer just borrowing more; it is borrowing better: on longer maturities, with stronger investor trust, and at pricing that reflects rising credibility.
If BOAD’s model can be replicated, this may mark the start of a deeper, more resilient African credit market — one where Africa’s risk and opportunity are priced on fundamentals, not outdated perceptions.
References
- African Pact. (2025, August 28). Africa’s public lenders step into capital markets. African Pact. https://africanpact.org/2025/08/28/public-lenders-capital-markets-africa/
- African Development Bank. (2025,). African Development Bank launches its second hybrid capital transaction: USD 500 million Perpetual Non-Call 10 (Perp NC10). https://www.afdb.org/en/news-and-events/press-releases/african-development-bank-launches-its-second-hybrid-capital-transaction-usd-500-million-perpetual-non-call-10-year-perp-nc10-hybrid-capital-87107
- BOAD. (2025, February 7). The West African Development Bank “BOAD” leads the way in innovation with landmark record-breaking $500 million public hybrid issuance. Banque Ouest Africaine de Développement. https://www.boad.org/en/our-publications/news/the-west-african-development-bank-boad-leads-the-way-in-innovation-with-landmark-record-breaking-500-million-public-hybrid-issuance/
- BOAD. (2025, April 16). Moody’s confirms BOAD’s credit rating at Baa1 and revises its outlook from negative to stable. Banque Ouest Africaine de Développement. https://www.boad.org/en/our-publications/news/moodys-confirms-boads-credit-rating-at-baa1-and-revises-its-outlook-from-negative-to-stable/
- BOAD. (2025, October 8). Émission obligataire historique : La BOAD lève 1 milliard d’euros sur 15 ans. Banque Ouest Africaine de Développement. https://www.boad.org/fr/nos-publications/salle-de-presse/compress-emission-obligataire-historique-boad-1-milliard-euros-15-ans/
- Cleary Gottlieb Steen & Hamilton LLP. (2025, March 26). Côte d’Ivoire in $1.75 billion and XOF 220 billion offering and concurrent cash tender offers. Cleary Gottlieb. https://www.clearygottlieb.com/news-and-insights/news-listing/cote-divoire-in-1-75-billion-and-xof220-billion-offering-and-concurrent-cash-tender-offers
- Fitch Ratings. (2025, April 17). Fitch revises BOAD outlook to stable; affirms at BBB. Fitch Ratings. https://www.fitchratings.com/research/sovereigns/fitch-revises-boad-outlook-to-stable-affirms-at-bbb-17-04-2025
- GlobalCapital. (2025, October 8). BOAD finds demand for rare 15-year senior paper. GlobalCapital. https://www.globalcapital.com/article/2ffieqp8h4uayjwonwvsw/emerging-markets/boad-finds-demand-for-rare-15-year-senior-paper
- Incote d’Ivoire. (2025.). Eurobond : Côte d’Ivoire successfully raises $1.75 billion on international markets. Incote d’Ivoire. https://www.incotedivoire.net/economic/new/Eurobond:%20C%C3%B4te%20d’Ivoire%20Successfully%20Raises%20$1.75%20Billion%20on%20International%20Markets
- Reuters. (2025, September 30). Nigeria to tap global debt markets with $500 million sukuk, seeks $2.3 billion new borrowing. Reuters. https://www.reuters.com/world/africa/nigeria-tap-global-debt-markets-with-500-million-sukuk-seeks-23-billion-new-2025-10-07/