Page 10 - Nile Explorer Issue 007
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A frican Development Bank launch- “These are critical times for Africa as it It is estimated that the continent will
addresses the challenges resulting from
require many billions of dollars to cush-
es record breaking $3 billion
“Fight COVID-19” Social Bond. The the Coronavirus. The African Develop- ion the impact of the disease as many
landmark transaction is the largest US ment Bank is taking bold measures to countries scrambled contingency
dollar denominated Social bond trans- support African countries. This $3 measures, including commercial
action to date in capital markets. billion Covid-19 bond issuance is the lockdowns in desperate efforts to
According to press release to media first part of our comprehensive contain it. Globally, factories have been
houses, March 27, The African Devel- response that will soon be announced. closed and workers sent home, disrupt-
opment Bank (ADB) has raised an This is indeed the largest dollar social ing supply chains, trade, travel, and
exceptional $3 billion in a three-year bond transaction to date in capital driving many economies toward reces-
bond to help alleviate the economic and markets. We are here for Africa, and we sion.
social impact the Covid-19 pandemic will provide significant rapid support Commenting on the landmark transac-
will have on livelihoods and Africa’s for countries,” said Dr. Akinwumi tion, George Sager, Executive Director,
economies. Adesina, President of the African Devel- SSA Syndicate, Goldman Sachs said: “In
opment Bank Group.
The Fight Covid-19 Social bond, with a a time of unprecedented market volatili-
three-year maturity, garnered interest The order book for this record-break- ty, the African Development Bank has
from central banks and official institu- ing bond highlights the scale of investor been able to brave the capital markets in
tions, bank treasuries, and asset manag- support, which the African Develop- order to secure invaluable funding to
ers including Socially Responsible ment Bank enjoys, said the arrangers. help the efforts of the African conti-
Investors, with bids exceeding $4.6 “As the Covid-19 outbreak is danger- nent's fight against Covid-19. Not only
billion. This is the largest dollar denom- ously threatening Africa, the African that, but in the process, delivering their
inated Social Bond ever launched in Development Bank lives up to its huge largest ever USD benchmark. A truly
international capital markets to date, responsibilities and deploys funds to remarkable outcome both in terms of its
and the largest US Dollar benchmark assist and prepare the African popula- purpose but also in terms of a USD
ever issued by the Bank. It will pay an tion, through the financing of access to financing”.
interest rate of 0.75%. health and to all other essential goods, The Bank established its Social Bond
services and infrastructure,” said
The African Development Bank Group Tanguy Claquin, Head of Sustainable framework in 2017 and raised the
is moving to provide flexible responses Banking, Crédit Agricole CIB. equivalent of $2 billion through
aimed at lessening the severe economic issuances denominated in Euro and
and social impact of this pandemic on Coronavirus cases were slow to arrive Norwegian krone. In 2018 the Bank was
its regional member countries and in Africa, but the virus is spreading designated by financial markets,
Africa’s private sector. quickly and has infected nearly 3,000 ‘Second most impressive social or
people across 45 countries, placing sustainability bond issuer” at the Global
strain on already fragile health systems. Capital SRI Awards.
10 | The Nile Explorer 006
