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AfDB issues first green bond in SA


THE African Development Bank (AfDB) has issued a N$200 million South African rand (ZAR) dominated 1-year green bond due in September 2023.

The bond, which pays a coupon of 6.90%, was arranged by Daiwa Capital Markets Europe, and sold in a private placement format to a single Japanese institutional investor, Sony Bank, and is in support of green financing in African countries.

This is the first AfDB green bond denominated in ZAR, after successful green bond issuances in US dollars (USD), Swedish krona (SEK), and Australian dollar (AUD) since the bank established its green bond framework in 2013.

The funds raised through this transaction will be used to finance eligible green projects in accordance with the AfDB’s green bond programme, for the purpose of supporting African countries’ transition to green growth.

The green bond proceeds will contribute to building resilience against the negative effects of climate change, achieving sustainable infrastructure, developing ecosystems and promoting efficient and sustainable use of natural resources, such as water, a sector particularly vulnerable to climate change across the African continent.

Gaku Funakoshi, the head of treasury and investments at Sony Bank, said with this investment, Sony Bank is pleased to contribute to the achievement of the UN Sustainable Development Goals (SDGs), as an environmental, social and governance (ESG) responsible investor, and furthermore will strive to contribute to the development of sustainable society in accordance with Sony Financial Group’s ESG investment policies.

Keith Werner of the AfDB, said the bank was pleased with the successful issuance of the green bond, which was helping the bank to broaden and diversify its investor base to foster green growth by financing eligible climate change projects and working towards achieving the continent’s SDGs.

NAM BONDS

The Bank of Namibia last week released the borrowing calendar for the remaining part of the fiscal year, detailing new dates for the GC23 switch, new bond issuances and coupon payments.

The state, through the central bank as per the original borrowing plan, still needs to borrow N$6,3 billion before the year’s end.

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