The African Development Bank (AfDB) announced on March 28 that it had raised a remarkable amount of
three billion dollars (about 1,800 billion FCFA) on the international financial markets through
a social bond, intended to mitigate the effects of the Covid-19 pandemic on the lives of
African populations and economies of the continent.
This social bond issue "Fighting COVID-19", said the Bank
was highly successful with leading investors, including social
Responsible. It thus benefited from a very high quality order book of more than 4.6 billion b dollars.
"Fighting COVID-19" is now the largest social loan denominated in US dollars, having
never been placed by an issuer on international financial markets. It is also the largest
benchmark global loan never issued by the African Development Bank. The program carries a
coupon of 0.75%, and a maturity of three years", reports the text.
African Development Bank Group takes initiatives to provide answers
flexible to reduce the severe economic and social effects of the Covid-19 pandemic on its countries
regional members and on the African private sector, notes the AfDB. Who continues: "This is a critical period
for Africa, at a time when it must meet the challenges brought about by Covid-19. The African Bank of
Development is taking bold steps to support African countries. This
$1 billion Covid-19 bond issue is the first part of our global response
which will be the subject of an upcoming announcement, said Akinwumi Adesina, President of the Bank
African development. This issue is the largest corporate bond ever issued in dollars
on the capital markets. We are here for Africa and we will quickly provide support
important to the continent."
The record amount of orders for this bond highlights the investor support enjoyed by the
African Development Bank, according to the lead banks of this transaction, still reports the
Bad.
"With the Covid-19 epidemic dangerously threatening Africa, the African Development Bank wants
live up to its enormous responsibilities and deploy funds to help and prepare people
by contributing to access to health and all other goods, services and infrastructure
tanguy Claquin, Global Head of Sustainable Banking at Crédit Agricole CIB,
cited by the multilateral banking institution.
After finding that cases of patients infected with the virus have been slow to manifest themselves in
Africa, but that Covid-19 is spreading rapidly and has infected nearly 3000 people in 45 countries,
Putting a lot of pressure on already fragile health systems, the AfDB estimates that billions of dollars
are needed to help African countries affected by the pandemic. "Emergency measures,
have already been launched by countries, in some cases to the cessation of economic activities, in order to
curb the spread of the virus. All over the world, businesses are closed and workers are returned home, disrupting supply chains, trade and
travel, and drag the global economy into recession," it reads.