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AfDB raises $3billion COVID-19 bond

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The African Development Bank (AfDB) has raised $3 billion in a three-year bond to help ease the economic and social impact the coronavirus deadly disease will have on livelihoods and Africa’s economies.

The social bond which is to fight coronavirus with a three-year development accumulate interest from official institutions and central banks, bank treasuries, and asset managers including Investors that are socially responsible, with bids above $4.6 billion.

This was the largest Social Bond ever launched in international capital markets to date, and the largest US Dollar benchmark ever issued by the Bank. It will pay an interest rate of 0.75 per cent.

According to a statement, the AfDB is moving to provide flexible responses aimed at reducing the harsh economic and social impact of the deadly disease on its regional member countries and Africa’s private sector.

AfDB said these are critical times for Africa as it addresses the challenges resulting from the COVID-19 and that are taking bold actions to support African countries. The $3 billion Covid-19 bond issuance is the first part of their comprehensive reaction that will soon be announced.

AfDB President, Dr. Akinwumi Adesina said the development is indeed the largest social bond transaction to date in capital markets. Adding that they are here for Africa, and will provide significant rapid support for countries.

The arrangers said the order book for the record-breaking bond highlights the scale of investor support, which the African Development Bank enjoys.

Head of Sustainable Banking, Crédit Agricole CIB, Tanguy Claquin said as the coronavirus epidemic is seriously frightening Africa, the AfDB lives up to its massive tasks and deploys resources to support and organize the African population, through the financing of access to health and to all other vital goods, services and infrastructure.

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