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OPEC Fund prices new US$1.5 billion bond in the international capital market
January 23, 2025: The OPEC Fund has priced a new US$1.5 billion, 3-year benchmark bond. With a record orderbook of US$5.2 billion the offering was oversubscribed and attracted strong demand from global investors. The transaction marks the OPEC Fund’s first public benchmark of 2025 and pays a coupon of 4.750 percent.
The bond attracted strong interest from more than 100 investors around the globe. 58 percent of investors in the bond are from Europe, Middle East and Africa (EMEA), 27 percent from Asia-Pacific (APAC) and 15 percent from the Americas. In terms of investor type, central banks & official institutions accounted for 64 percent, fund managers 23 percent and banks 10 percent.
The Joint Bookrunners on the transaction were Credit Agricole CIB, Citi, Goldman Sachs Bank Europe SE, J.P. Morgan, Nomura.
Transaction Details:
| Issuer | The OPEC Fund for International Development (Ticker “OFIDEV”) |
| Rating | AA+/AA+ (Stable/Stable - S&P/Fitch) |
| Format | Reg S / 144a |
| Issue Amount | USD 1.5 bn |
| Pricing Date | 22nd January 2025 |
| Settlement Date | 3rd February 2025 (T+8) |
| Maturity Date | 3rd February 2028 |
| Coupon | 4.750% s/a, 30/360 |
| Re-offer vs. SOFR Mid-Swaps | +64 bps |
| Re-offer vs. UST (CT3) | +42.8 bps |
| Re-offer Price/Yield | 99.981% / 4.757% s/a |
Joint Bookrunners
| Credit Agricole CIB, Citi, Goldman Sachs Bank Europe SE, J.P. Morgan, Nomura |
About the OPEC Fund
The OPEC Fund for International Development (the OPEC Fund) is the only globally mandated development institution that provides financing from member countries to non-member countries exclusively. The organization works in cooperation with developing country partners and the international development community to stimulate economic growth and social progress in low- and middle-income countries around the world. The OPEC Fund was established in 1976 with a distinct purpose: to drive development, strengthen communities and empower people. Our work is people-centered, focusing on financing projects that meet essential needs, such as food, energy, infrastructure, employment (particularly relating to MSMEs), clean water and sanitation, healthcare and education. To date, the OPEC Fund has committed more than US$29 billion to development projects in over 125 countries with an estimated total project cost of more than US$200 billion. The OPEC Fund is rated AA+/Outlook Stable by Fitch and AA+, Outlook Stable by S&P. Our vision is a world where sustainable development is a reality for all.
