The African Development Bank (AfDB), has issued a 100-million-dollar seven-year “Feed Africa” theme bond due by September 2029.
This is contained in
a statement issued on the website of the AfDB on Thursday.
The bond was issued
on Sept. 14.
The new issuance was
arranged by Citigroup Global Markets Limited and sold in a Private Placement
format to a single Japanese investor, Norinchukin Bank, a supporter of
Agricultural, Fishery and Forestry industries.
Through this
investment in the bank’s “Feed Africa” theme bond, the investor aims to support
the AfDB’s initiatives and contribute to the increase in food production in
Africa.
According to the statement, since 2015, AfDB has issued a
certain number of theme bonds linked to its five strategic operational
priorities known as the “High 5s”.
The bonds issued are
for the purpose of financing projects under each of the High 5 areas.
The “Feed Africa”
bond is intended to support the “Feed Africa” High 5.
The bank would use
its best efforts to direct an amount equal to the net proceeds of the issue of
the notes to lending projects.
The projects aim to
advance the “Feed Africa” strategic priority, subject to and in accordance with
the bank’s lending standards.
Under its Feed Africa
strategy, the AfDB is working to reduce poverty, end hunger and malnutrition,
and make Africa a net food exporter.
The bank would also
move Africa to the top of export-oriented value chains where it has a
comparative advantage.
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