THE African Growth Financial institution (AfDB) has issued a 1 billion Norwegian krone (NOK) five-year inexperienced bond due March 2028, paying a 3,753% coupon.
The bond was issued on 2 March and marks the financial institution’s first inexperienced bond issuance within the NOK market.
This follows profitable inexperienced bond issuances in US {dollars}, Swedish krona, and Australian greenback, for the reason that financial institution established its inexperienced bond framework in 2013, and three NOK social bonds issued in 2019 and 2021.
The funds raised by means of this transaction will probably be used to finance eligible inexperienced initiatives in accordance with the AfDB’s inexperienced bond programme for the aim of supporting African international locations’ transition to inexperienced progress.
The bond proceeds will contribute to constructing resilience in opposition to the destructive impacts of local weather change, attaining sustainable infrastructure, creating ecosystems and selling environment friendly and sustainable use of pure assets reminiscent of water, a sector notably weak to local weather change throughout the continent.
This transaction emphasises the financial institution’s continued deal with delivering on its 10 yr technique whose overarching goals are inclusive progress and transition to inexperienced progress.
It additionally illustrates the financial institution’s constant effort to decide to its function as one of many primary actors of local weather finance in Africa, notably within the sustainable water and wastewater administration sector, which represents 28% of financial institution’s inexperienced pipeline as of 31 December 2022.
That is notably related contemplating the forthcoming United Nations (UN) 2023 water convention in New York, which goals to focus the world’s consideration on the subject of water and the essential function it performs in delivering on all the sustainable growth agenda.
Commenting on the bond issuance, Kristin Lien, senior portfolio supervisor at Kommunalbanke, mentioned: “Kommunalbanken is delighted to help AfDB’s first inexperienced bond within the Norwegian market. It represents an awesome alignment of each our personal and AfDB’s goal of mobilising capital to finance the transition to a low-carbon, local weather resilient future. We hope the success of this transaction will encourage different growth finance establishments to boost extra funding within the Norwegian inexperienced bond market sooner or later.”
Keith Werner, division supervisor, capital markets and monetary operations, AfDB mentioned: “As a pioneering participant within the setting, social and company governance market, the AfDB is happy to launch its inaugural inexperienced bond within the Norwegian market in collaboration with SEB to be able to help the financial institution’s dedication in direction of addressing the devastating results of local weather change in Africa whereas extending its investor attain within the Nordic market.
“This fifteenth inexperienced bond, issued below the financial institution’s inexperienced bond framework, highlights the financial institution’s constant investments in sectors reminiscent of renewable power, power effectivity, clear transportation, biosphere conservation, however specifically, as we strategy the UN water convention later this month, the more and more essential sector of sustainable water and wastewater administration.
“We’re proud to help AfDB’s continued growth into new areas of the inexperienced finance market and help the supply of their inexperienced progress technique in Africa. Later this month on the UN water convention in New York, we will probably be reminded of how water performs such a essential function in delivering on the sustainable growth agenda, so it is an awesome alternative to focus on AfDB’s financing on this sector which represents near a 3rd of their inexperienced pipeline,” mentioned Ben Powell, head of sustainable debt capital markets, SEB.
Supply: namibian
