The African Development Bank Launches Record Breaking $3Billion Social Bond to Fight COVID-19 in Africa.
Recording Breaking: The African Development Bank (AAA) announced the raise of an exceptional $3 billion in a three-year bond to alleviate the negative economic and social impact of Covid-19 pandemic on livelihoods and Africa’s economies.
The three-year social bond attracted the interest of central banks and official institutions, bank treasuries, and asset managers including Socially Responsible Investors, with bids exceeding $4.6 billion.
This is currently the largest Social Bond ever launched in international capital markets to date. This is also the largest US Dollar benchmark ever issued by the Bank. Interest will be paid at the rate of 0.75 percent.
“These are critical times for Africa as it addresses the challenges resulting from the Coronavirus. The African Development Bank is taking bold measures to support African countries. This $3 billion Covid-19 bond issuance is the first part of our comprehensive response that will soon be announced.
See Also: A New Report by African Development Bank Lists Blockchain Technology Among the Top Six Key Technology For Africa.
This is indeed the largest social bond transaction to date in capital markets. We are here for Africa, and we will provide significant rapid support for countries,” said Dr. Akinwumi Adesina, President of the African Development Bank Group.
“As the Covid-19 outbreak is dangerously threatening Africa, the African Development Bank lives up to its huge responsibilities and deploys funds to assist and prepare the African population, through the financing of access to health and to all other essential goods, services and infrastructure,” said Tanguy Claquin, Head of Sustainable Banking, CrÃ©dit Agricole CIB.
The bond arrangers notes that the order book for this record-breaking bond shows the amount of support from investors which is beneficial to the African Development Bank.
The Bank’s Social Bond framework was created in 2017. It raised the equivalent of $2 billion through issuances denominated in Euro and Norwegian krone.
Moreover, in 2018 the Bank was recognized as the second most impressive social or sustainability bond issuer by the financial markets at the Global Capital SRI Awards.
“We are thankful for the exceptional level of interest the Fight Covid-19 Social Bond has raised across the world, as the African Development Bank moves towards lessening the social and economic impact of the pandemic on a continent already severely constrained.
Our Social bond program enables us to highlight our strong development mandate to the investor community, allowing them to play a part in improving the lives of the people of Africa. This was an exceptional outcome for an exceptional cause,” said Hassatou Diop N’Sele, Treasurer, African Development Bank.
Globally, factories have been shut down and workers sent home. Some other companies have their workers working remotely. This has equally disrupted the supply chains, travel and trade.
On Digital Currencies
USA previously announced the launch of digital dollars during the launch of it’s economic stimulus package due to the adverse effects of COVID-19.
Earlier this month, China’s apex bank, Peoples Bank of China (PBoC) said it’s one step closer to launching the digital Yuan for use in China. China previously released cryptography law to guide the use of digital currency and its operation in China.
It is estimated that Africa will need billions of dollars to control the impact of the coronavirus pandemic in the countries that was hit by the virus.
All rights reserved. This material and any other digital content on this platform may not be reproduced, published, broadcast, written or distributed in full or in part, without written permission from DiutoCoinNews.