• Thursday, April 18, 2024
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AfDB unveils $2bn social global bond

AfDB, Indorama sign $75m loan deal to boost fertiliser production

The African Development Bank (AfDB), a regional multilateral finance institution, has unveiled a $2 billion social global bond scheduled for February 25, 2027.

This was revealed in a statement by the bank on Wednesday.

The statement said the transaction was AfDB’s first social bond issued under its new Sustainable Bond Framework, established in September 2023, with a 4.13 percent three-year tenor.

“Sustainable bond programme seamlessly consolidates and enhances the African Development Bank’s existing Green and Social Bond programmes, facilitating the issuance of green bonds, social bonds, and sustainability bonds,” it said.

It said the new three-year Social Benchmark is the bank’s first global benchmark of the year, strategically aligned with the robust reopening of primary markets in January 2024.

“This issuance is a significant highlight amid a dynamic week in the USD SSA markets, witnessing the launch of 8 benchmarks totalling $ 17.25 billion within two days.”

AfDB noted that the disbursement received support from the global investor community, with an excess of $ 3.5 billion.

“The social label garnered interest from ESG investors, representing 38 percent of participants in the book.

“Initial Pricing Thoughts were released at SOFR mid-swaps plus 33 basis points area. The deal enjoyed good investor demand during the overnight session with Indications of Interest reaching $2.1billion by the time books officially opened on Thursday,” it added.