Fixed Income Pulse: African Development Bank Group $3 billion "Fight Covid-19" social bond

AFDB deal at a glance

London Stock Exchange welcomes African Development Bank Group’s first transaction on the Sustainable Bond Market (SBM). Raising $3 billion, the “Fight COVID-19” social bond is the largest green, social or sustainable bond on London Stock Exchange’s SBM from any issuer globally.

The proceeds will be utilised towards enhancing access to essential services, supporting healthcare, employment, water and sanitation to mitigate the impact of the pandemic. The bond attracted orders of more than $4.6 billion from central banks and institutional investors

The President of the African Development Bank, Akinwumi Adesina, said: “We are proud to announce that our first listing on London Stock Exchange is a social bond. This is only the beginning of a stronger partnership between the African Development Bank and London Stock Exchange. We will mobilize all we can on the capital market to fight the coronavirus in Africa.”

London Stock Exchange’s Sustainable Bond Market acts as a platform for sustainable finance instruments and comprises of dedicated segments for social and sustainability bonds. We remain committed to supporting our clients and the development of the social and sustainability bond markets during these testing times.
 
London Stock Exchange has worked closely with green, social and sustainable finance investors and issuers for over a decade. 235 active bonds are available on SBM, raising a combined £44.7 billion. Issuers come from 19 different countries, with bonds issued in 17 different currencies
 
AfDB is the third African issuer on SBM, alongside Acorn Holdings and Standard Bank. In January 2020, Acorn Holdings became the first Kenyan issuer to launch a green bond in the international market. In March, Standard Bank became the first issuer from South Africa to issue an offshore green bond.

As part of our ongoing commitment to providing issuers with access to capital markets, London Stock Exchange will be admitting eligible social and sustainability bonds with use of proceeds aligned towards mitigating the impact of COVID-19 with no admission fees for an initial period of three months commencing 3 April 2020.

AFDB Graph

Source: Bloomberg, March 2020

The “Fight COVID-19” social bond follows on from further collaboration between African Development Bank Group and London Stock Exchange Group, with joint initiatives including Companies to Inspire Africa and the LSEG Africa Advisory Group.

For further information, please visit our website, or send us an email at bonds@lseg.com or call +44 (0)207 797 3921.

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