This is the first ever Environmental, Social and Governance (ESG) bond issued by the African Development Bank (AfDB). Initiated on June 14, this financial operation specified in African currency is worth 19 billion Ugandan shillings, or 5.07 million dollars.
“The fixed coupon to be received per bond is 10.5%. Standard Chartered Bank arranged the transaction under the AfDB’s Multi-Market Debt Issuance Facility. Capitulum Asset Management is the investor,” says the financial institution based in Abidjan, Ivory Coast. The financing is intended for the implementation of the AfDB’s High 5 program by 2024.
This initiative is based on five, food security, electrification, industrialization, integration and improving the quality of life on the continent. According to Keith Werner, head of the AfDB’s Capital Markets and Financial Operations Division, the aim is to improve the quality of life of Africans in line with the United Nations’ Sustainable Development Goals (SDGs).
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While this bond issue is unprecedented for the AfDB, it is probably not the first of its kind on the continent. Only three weeks ago, British International Investment (BII) subscribed to a $75 million basket of green bonds organized by Symbiotics, an emerging market access platform based in Geneva, Switzerland. The financing will support micro, small and medium enterprises (MSMEs) and green projects in Africa and Asia. These green bonds will finance the installation of rooftop solar panels, sustainable agriculture, energy efficiency in buildings and electric vehicles.
Benoit-Ivan Wansi