A record breaking social bond has officially been released by the African Development Bank to fight the difficult times ahead. African leaders are awake to the challenges posed by Coronavirus (covid-19). The bond is being recognized internationally as the largest Social Bond ever launched in global capital markets to date, and the largest in US Dollars ever issued by the Bank. The Covid-19 social bond, with a maturity of 3 years, will pay an interest rate of 0.75% to investors.
Read About The European Union Corona Bonds
“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 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, Crédit Agricole CIB.
3 Facts To Note About The AFDB “Fight Covid-19” Social Bond 2020:
- Interest rate: 0.75%. It is a social bond for social good.
- Bond Maturity Period: 3 years.
- Allocation across countries: Europe (37%), Americas (36%), Asia (17%) Africa (8%,) and Middle-East (1%).
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