(Bloomberg) -- The Trade & Development Bank, a pan-African lender with 25 nations as members, is considering a return to bond markets after an absence of three years.

“Historically, there’s a benchmark size, which is a minimum of $500 million,” Group President Admassu Tadesse said in an interview. “That’s the ticket size that you tend to look at for an efficient capital raise.” 

From 2010 to 2021, the TDB issued $2.4 billion in eurobonds. Since raising $650 million in 2021, the lender has not returned to international capital markets and secured financing by accepting new shareholders and through facilities with global financial institutions. The World Bank, for example, extended a $300 million facility earlier this year to help accelerate development of clean energy.

The TDB may issue within 12 months as an “element of normalization” returns to bond markets, Admassu said. “We are much more encouraged at the moment than we were three or six months ago,” he said on the sidelines of a sovereign wealth fund conference in Mauritius this week.

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A resumption is also driven by the fact the bank paid off $1.45 billion in bonds in the past two years, including $750 billion last month. The next big maturity are the 2028s issued at 4.125% three years ago.

“We are committed to bond issuances,” he said, adding the lender may diversify sources down the road to Samurai, Sukuk and Panda bonds.

The bank offers bilateral and syndicated short and long-term financing through debt, equity, guarantees or export credit to sovereigns, financial institutions and corporates including small and medium-sized enterprises.

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