LONDON - J.P. Morgan Securities PLC announced today that the stabilization period following the issuance of fixed rate notes by the African Development Bank has concluded without any market interventions. The stabilization period, a common post-issuance phase intended to support the market price of new securities, did not see J.P. Morgan, the stabilization coordinator, engage in any stabilization activities.
The securities in question include 3-year USD fixed rate notes with an aggregate nominal amount of $2 billion and a coupon of 3.875%, as well as 10-year USD fixed rate notes valued at $1 billion with a coupon of 4.5%. Both tranches are due on June 12 of their respective maturity years, 2028 and 2035, and are listed on the Luxembourg Stock Exchange’s Regulated Market.
The offer prices were set at 99.706 for the 2028 notes and 99.530 for the 2035 notes. Stabilization managers alongside J.P. Morgan included Bank of America (NYSE:BAC), BNP Paribas (OTC:BNPQY), Nomura, and Wells Fargo (NYSE:WFC) Securities.
This announcement, which is purely for informational purposes, confirms that the market has absorbed the new securities without the need for stabilization measures. It underscores the stability of the African Development Bank’s latest debt offering and indicates a potentially favorable reception in the financial markets. Stabilization activities are regulated under the Market Abuse Regulation (EU/596/2014) and the rules of the Financial Conduct Authority, ensuring transparency and fairness in the process.
Investors and market watchers often view the absence of stabilization actions as a positive sign of an issuance’s intrinsic strength and investor confidence. The African Development Bank, a multilateral financial institution, supports economic and social development in Africa and the issuance of these notes is part of its efforts to raise capital for its development initiatives.
The details provided in this release are based on a press release statement from J.P. Morgan Securities PLC and do not constitute an offer or invitation to underwrite or acquire securities in any jurisdiction.
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