The African Development Bank (AfDB), a multilateral institution that works to alleviate poverty in Africa, recently joined the NASDAQ (National Association of Securities Dealers Automated Quotations) Sustainable Bonds Network (NSBN), an online platform promoting bonds that fund projects addressing the UN’s Sustainable Development Goals. As of July 2020, 10 of AfDB’s bonds are listed on the network.
Ann-Charlotte Eliasson, the Head of EU Bond Listings and Sustainable Debt at NSBN, called attention to AfDB’s “Fight COVID-19 Social Bond, [which was] launched to alleviate the impact of the pandemic on African economies and livelihoods,” with the goal of raising USD 3 billion. Ms Eliasson added, “We are proud to offer visibility to an issuer with such a strong social mandate, which the world needs more than ever, especially in these challenging times.” Of the AfDB bonds on the platform, five are “green” bonds with target raises totaling USD 997 million and five “social” bonds, including the Fight COVID-19, which together seek investments of USD 5.47 billion.
NSBN was founded in 2019 to increase the transparency and awareness of “green, social and sustainability bonds.” As of 2020, the network lists approximately 4,000 bonds from 50 issuers, offering investors a central source of documents such as annual reports and the planned allocations of each bond’s proceeds to various Sustainable Development Goals. As of 2019, NASDAQ reported an equities market volume of USD 213 billion.
AfDB Group was founded in 1964 and provides loans and grants to governments and private companies in Africa. It consists of three entities, AfDB, the African Development Fund and the Nigerian Trust Fund. Owned and funded by its member governments, the bank has a mandate to reduce poverty and promote sustainable development. As of October 2019, AfDB has total capital of USD 208 billion provided by shareholders from its 80 member countries, including 54 in Africa.
By Andrew Janni, Research Associate
Sources and Additional Resources
Press release from AfDB
https://www.afdb.org/en/news-and-events/press-releases/african-development-bank-joins-nasdaq-sustainable-bond-network-36229
AfDB homepage
https://www.afdb.org
About NSBN
https://www.nasdaq.com/solutions/nasdaq-sustainable-bond-network
NASDAQ homepage
https://www.nasdaq.com/
UN Sustainable Development Goals
https://sustainabledevelopment.un.org
Previous Microcapital post on AfDB
https://www.microcapital.org/microcapital-brief-african-development-bank-afdb-taking-13m-equity-stake-in-yeelen-financial-fund-to-boost-inclusion-in-west-africa/
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