- The African Development Bank (AfDB) is issuing its first green bond in the South African rand.
- The bond proceeds will finance green projects in several key sectors for Africa’s green transition.
The African Development Bank (AfDB) has issued a green bond in the South African rand, expanding the green bond growth in Africa. The bond, arranged by Daiwa Capital Markets Europe, aims to raise 200 million South African rands ($ 11.4 million) in one year, maturing in September 2023. The bond is being sold privately to a single Japanese institutional investor, Sony Bank.
The AfDB claims that the bond profits will be applied to green projects that qualify for its green bond program. The program started in 2013 and has already assisted in funding some hydroelectric projects, such as the Malagarasi plant (44.8 MW) in Tanzania and water management initiatives in Rwanda, Senegal, Kenya, and Morocco. The program, which has already provided funding for 45 projects, also includes funding for developing the Noor Ouarzazate solar complex in Morocco and the Yeleen project in Burkina Faso.
According to the pan-African bank based in Abidjan, Ivory Coast, the proceeds from the green bonds will support the efficient and sustainable use of natural resources like water. This sector is particularly vulnerable to climate change across the African continent and the development of sustainable infrastructure, ecosystems, and infrastructure.