LOME, Togo (BG) — The West African Development Bank (BOAD) has raised $500 million through a sustainable hybrid bond, a financial instrument that combines debt and equity features.

In a statement on Monday, the bank said that investor demand was strong, with $1.9 billion in orders— three times the targeted amount.

This reflects confidence in BOAD’s financial strength and mission. The bond has a 30-year term with a fixed 5.9% interest rate and a five-year period before it can be repaid early.

Before this, BOAD had secured $204 million through private agreements with the Arab Bank for Economic Development in Africa (BADEA) and Cassa Depositi e Prestiti (CDP).

With this new bond, BOAD is closer to its Djoliba Strategic Plan goal of increasing its financial capacity.

Investors from the United Kingdom, Switzerland, the United States, and other regions participated, with asset managers making up the largest group.

The funds will support green and social projects, such as infrastructure, renewable energy, and community development, reinforcing BOAD’s commitment to sustainable growth.

“This groundbreaking transaction is a testament to investor confidence and underscores the BOAD’s commitment to innovation as a key driver of development,” said Serge Ekué, BOAD President and Chairman.

BOAD’s bond was rated Baa3 by Moody’s and recognized as 50% equity by both Moody’s and Fitch, strengthening the bank’s capital base.

Major financial institutions, including BNP Paribas, Société Générale, HSBC, JP Morgan, and SMBC, supported the issuance.

With this funding, BOAD can continue financing projects that improve economic growth and living conditions across West Africa.