The African Development Bank (ADB) has raised 3 billion dollars in a three years bond known as ‘Fight COVID-19,’ as its efforts to alleviate the economic and social impact of the COVID-19 pandemic. With an interest of 0.75%, this bond is the largest dollar dominated social bond launched in the international capital market.  The launch is a response by the African Development Bank Group aimed at reducing the social and economic impact of the aftermath of the pandemic on its regional member states and Africa’s private sector.

According to Dr. Akinwumi Adesina, President of the African Development Bank Group:

“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 dollar social bond transaction to date in capital markets. We are here for Africa, and we will provide significant rapid support for countries.”

It has been estimated that continent will need billions of dollars cushion the effect of the coronavirus pandemic which have heavily impacted the economy and led to proactive measures; commercial lockdowns , factories have been closed and workers sent home, disrupting supply chains, trade, travel, and driving many economies toward recession.

In statement by George Sager, Executive Director, SSA Syndicate, Goldman Sachs, he buttressed:

“In a time of unprecedented market volatility, the African Development Bank has been able to brave the capital markets in order to secure invaluable funding to help the efforts of the African continent’s fight against Covid-19. Not only that, but in the process, delivering their largest ever USD benchmark. A truly remarkable outcome both in terms of its purpose but also in terms of a USD financing”.

The Fight Covid-19 social bond has been 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%).


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