AfDB raises US$3bn to fight COVID-19
The African Development Bank (AAA) has raised an exceptional US$3 billion in a three-year bond to help alleviate the economic and social impact the Covid-19 pandemic will have on livelihoods and Africa's economies.
The Fight Covid-19 Social bond, with a three-year maturity, garnered interest from central banks and official institutions, bank treasuries, and asset managers including Socially Responsible Investors, with bids exceeding $4.6 billion.
This is the largest 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%.
The African Development Bank Group is moving to provide flexible responses aimed at lessening the severe economic and social impact of this pandemic on its regional member countries and Africa's private sector.
"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.
The order book for this record-breaking bond highlights the scale of investor support, which the African Development Bank enjoys, said the arrangers.
"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.
Coronavirus cases were slow to arrive in Africa, but the virus is spreading quickly and has infected nearly 3,000 people across 45 countries, placing strain on already fragile health systems.
It is estimated that the continent will require many billions of dollars to cushion the impact of the disease as many countries scrambled contingency measures, including commercial lockdowns in desperate efforts to contain it. Globally, factories have been closed and workers sent home, disrupting supply chains, trade, travel, and driving many economies toward recession.
Fight Covid-19 was allocated to central banks and official institutions (53%), bank treasuries (27%) and asset managers (20%). Final bond distribution statistics were as follows: Europe (37%), Americas (36%), Asia (17%) Africa (8%,) and Middle-East (1%).
Source: classfmonline.com
Trending News
Dismiss ECG, GWCL, GACL bosses over losses – United Voices for Change to gov’t
07:38Debt restructuring: No MoU reached with bilateral creditors – IMF
08:19Public schools rebranding: We’re switching to blue and white, we’re painting all schools – Adutwum
08:06Today's 'dumsor' due to rainstorm – ECG
10:14Crusaders Against Corruption-Ghana denies joining Alan’s Alliance for Revolutionary Change
07:52Mahama’s accusations of partisanship in election official appointments not true, we’re committed to conducting fair elections – EC
07:18NDC to officially introduce Prof Naana Opoku-Agyemang as running mate tomorrow
10:15TEWU elects 1st female national chairperson
10:32Lands Minister gives FGR deadline to revamp its mining operations; assures workers of commitment to their welfare
17:22Lift veil on assets declared by public officials – Osafo-Maafo
14:33