October 29, 2020 All Things Fintech in Africa

African Development Bank Raise 3BN USD Social Bond for Post-COVID-19

 

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%).

 

in News
Banner
Related Posts

GTB Launches Beta Health Insurance

March 26, 2020

March 26, 2020 1

  For a fee of 500 Naira monthly, customers can subscribe to the GTB’ Beta Health Insurance. Guaranty Trust Bank...

How Nigerian Fin Techs are reacting to the Coronavirus Threat

March 20, 2020

March 20, 2020 1

On 19th of March, the NCDC (National Centre for Disease Control) announced a total of twelve Coronavirus (COVID) cases in...

Zenith General Insurance Partners with MTN to Launch Mobile Insurance

March 26, 2020

March 26, 2020

  Zenith General Insurance Company Limited known as Zenith Insurance has gone into a partnership with MTN to launch its...

  Why you should go cashless now?

March 29, 2020

March 29, 2020 1

  The Central Bank of Nigeria has advised Nigerians to go cashless and adopt alternative payment methods like electronic transfers...

Dangote loses N240 billion in five hours due to coronavirus

March 12, 2020

March 12, 2020

Aliko Dangote, Africa’s richest man, has reportedly suffered a huge loss of N240 billion in five hours due to coronavirus...

COVID 19: CBN Give Grant to Selected Pharmaceutical Firms

March 30, 2020

March 30, 2020

As intervention efforts to curb the spread of coronavirus, the Central Bank of Nigeria and the Bankers Committee have announced...

GTBank will win the war within the digital payment space – Agbaje

March 1, 2020

March 1, 2020 1

Mr Segun Agbaje, Chief Executive Officer, Guaranty Trust Bank (GTBank) says the bank will continue focusing on caring about human...

The African Fintech Monthly Roundup; Assessing All Fintech Developments across Africa in August

August 31, 2020

August 31, 2020

The African Fintech Monthly Roundup; Assessing All Fintech Developments across Africa in August The African Fintech industry has recorded outstanding...

Comments
Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.