The African Development Bank (AfDB) has issued its inaugural green bond in the Norwegian krone market, becoming the first African issuer to tap into this market.
The NOK 1 billion ($120 million) bond has a three-year tenor and will be used to finance sustainable infrastructure projects in African countries. The bond was issued under AfDB’s Green Bond Framework, which has been independently verified by the Climate Bonds Initiative.
The Norwegian krone market is one of the world’s leading green bond markets, and the AfDB’s issuance has received strong demand from investors. The bond was oversubscribed, with demand reaching NOK 1.8 billion ($220 million), demonstrating the strong appetite for sustainable investments in Africa.
The AfDB has been a pioneer in promoting sustainable development in Africa and has been issuing green bonds since 2013. The bank has issued a total of $6.9 billion in green bonds to date, financing more than 190 green projects across the continent.
The proceeds from the green bonds are used to finance projects that contribute to mitigating climate change and promoting environmental sustainability in Africa. The projects financed by the green bonds are aligned with the United Nations Sustainable Development Goals, particularly Goal 7 (Affordable and Clean Energy), Goal 9 (Industry, Innovation, and Infrastructure), and Goal 13 (Climate Action).
The issuance of the green bond in the Norwegian krone market is significant, as it opens up a new source of funding for sustainable infrastructure projects in Africa. It also demonstrates the AfDB’s commitment to promoting sustainable development in Africa and its leadership in the green bond market.
In conclusion, the African Development Bank’s inaugural green bond issuance in the Norwegian krone market is a significant milestone in promoting sustainable development in Africa. The bond’s oversubscription demonstrates the strong demand for sustainable investments in Africa and highlights the AfDB’s leadership in the green bond market. The proceeds from the bond will be used to finance sustainable infrastructure projects that contribute to mitigating climate change and promoting environmental sustainability in Africa, supporting the United Nations Sustainable Development Goals.