African Development Bank Launches First ESG African Border Currency Bond

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African Development Bank ( on June 14, 2022 launched a 2-year theme bond worth 19 billion Ugandan shillings (UGX) ($5.07 million), the first environmental, social and governance (ESG) issuance in an African border currency by a multilateral development agency.

The bonds, which mature in June 2024, will be settled in dollars with a fixed coupon of 10.5%. It is issued under the ‘Feed Africa’ of the African Development Bank Group ( strategic High 5 and marks the Bank’s first overseas UGX bond issuance in 2022. Standard Chartered Bank regulates transactions under the Bank’s Global Debt Issuance Facility. Capitulum Asset Management is the investor.

The Bank will direct funds equal to the net proceeds from this issue to lend projects that advance the ‘Feed Africa’ strategic priority, in accordance with its lending standards.

Keith Werner, African Development Bank Division Manager for Capital Markets and Financial Operations, said: “The African Development Bank is delighted to partner with Standard Chartered Bank and Capitulum Asset Management to launch this inaugural African border currency ESG transaction, contributing to the High-5 priority development while expanding the reach of our investors in Europe.”

Under the Feed Africa strategy, the Bank works to (i) contribute to poverty reduction; (ii) ending hunger and malnutrition; (iii) making Africa a net food exporter; and (iv) bringing Africa to the top of the export-oriented value chain which has a comparative advantage. The overall goal of feeding Africa is to make Africa a net food exporter by 2025.

Theodor Kirschner, Fund Manager at Capitulum Asset Management said: “Our participation in the African Development Bank’s Uganda shilling bond funding, ‘Feed Africa’ program helps us achieve our goal of investing with positive impact while delivering adequate returns in border currencies. .”

Dain Sherborne, head of EM SSA Bond Trading and Annemarie Ganatra, head of MTN at Standard Chartered Bank, said: “We are pleased that our core strength in the African market has allowed us to organize this ‘Feed Africa’ theme bond issuance for AfDB. We look forward to continuing to strengthen our partnerships with multilateral development banks to help them achieve their common goals.”

Distributed by the APO Group on behalf of the African Development Bank Group (AfDB).

Contact: [email protected]

About the African Development Bank Group:
The African Development Bank Group (AfDB) is Africa’s premier development finance institution. It consists of three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigerian Trust Fund (NTF). On the ground in 41 African countries with external offices in Japan, AfDB contributes to the economic development and social progress of its 54 regional member states. For more information:

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African Development Bank Launches First ESG African Border Currency Bond

Source link African Development Bank Launches First ESG African Border Currency Bond

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