The Fight COVID-19 Social bond, which is expected to mature in three years, has raised funds that will be channelled into alleviating the economic and social impact of the Coronavirus on the African continent.
The record-breaking bond attracted bids exceeding $4.6 billion, with strong interest from the central banks, financial institutions, investors and assets managers.
According to the official statement from the bank, it is “the largest dollar-denominated Social Bond ever launched in international capital markets to date, and the largest US Dollar benchmark ever issued by the Bank. It will pay an interest rate of 0.75%”.
Dr Akinwumi Adesina, President of the AfDB Group said that the bank was moving towards providing flexible responses to help the African economy recover from the pandemic.
“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.
“This is indeed the largest dollar social bond transaction to date in capital markets. We are here for Africa, and we will provide significant rapid support for countries,” Adesina said.
Tanguy Claquin, Head of Sustainable Banking, Crédit Agricole CIB stated that record-breaking bonds would turn around the economic downturn.
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