AfDB issues its first “Light Up and Power Africa” theme Bond

05/10/2017
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'Light Up and Power Africa' project examples

The African Development Bank (AfDB) has issued the first “Light Up and Power Africa” Bond for SEK 733 million (approximately JPY 10 billion) sold to the Dai-ichi Life Insurance Company, Limited, the sole investor in the transaction.

The “Light Up and Power Africa” Bond supports AfDB’s ambition to achieve an important goal of realizing Africa’s energy potential and bridging the continent’s energy deficit.

Over 645 million Africans have no access to energy. The electricity access rate for African countries is just over 40 percent, the lowest in the world. This undermines efforts to lift Africans out of poverty. Access to energy is crucial for the attainment of health and education outcomes, reducing the cost of doing business, unlocking economic potential, and creating jobs. Over 90% of Africa’s primary schools lack electricity while 600,000 Africans die each year due to a lack of clean cooking energy. Insufficient energy access handicaps the operations of hospitals and emergency services; compromises educational attainment; and drives up the cost of doing business.

Energy access for all is therefore one of the key drivers of inclusive growth as it creates opportunities for women, youth, and children in urban and rural areas. The aspirational goal of this priority area is to help the continent achieve universal electricity access by 2025 with a strong focus on encouraging clean and renewable energy solutions. This will require generating 160 GW of new capacity, 130 million new on-grid connections, 75 million new off-grid connections and providing 150 million households with access to clean cooking solutions.

As part of this effort, “Kenya's Last Mile Connectivity Program II", an energy project that provides access to electricity in Kenya, aims to provide electricity to 1.5 million people mainly from low-income groups and micro-enterprises that improve living standards and support economic growth.

Hassatou N’Sele, Acting Vice President, Finance and Treasurer of the AfDB Group, says  - “Our mission is the sustainable development of Africa and our core priorities are the High 5’s: “Light Up and Power Africa”; “Feed Africa”; “Industrialize Africa”; “Integrate Africa” and “Improve the Quality of Life for the People of Africa”. We would like to thank Dai-ichi Life for their interest and investment in “Light up and Power Africa” Bond. Their role in this transaction is helping towards our goal of attaining universal electricity access by 2025, with a strong focus on encouraging clean and renewable energy solutions.”

The AfDB will use its best efforts to direct an amount equal to the net proceeds of the issue of the Notes to lending projects within the strategic “Light Up & Power Africa” priority, subject to and in accordance with the AfDB’s lending standards. The proceeds of the Notes will be included in the ordinary capital resources of the AfDB and will be used for the general operations of the Issuer in accordance with the Agreement Establishing the African Development Bank.

The Bond was offered to Dai-ichi Life in a private placement format with Deutsche Bank AG as the sole arranger of the bond.

Summary Terms of the Bond
Issuer: The African Development Bank (AAA/AAA/Aaa)
Notional Amount:  SEK 733 million (approximately JPY 10 billion)
Tenor:     10 years
Settlement Date: 21 September 2017
Maturity Date: 21 September 2027
Sole Lead Manager: Deutsche Bank AG

About AfDB

The African Development Bank (AfDB) Group is the premier development finance institution in Africa with a mandate to spur sustainable economic development and social progress on the continent, thereby contributing to poverty reduction. The Bank Group achieves this objective by mobilizing and allocating resources for investment on the continent, and providing policy advice and technical assistance to support development efforts. The African Development Bank’s authorized capital of approximately US $100 billion is subscribed to by 80 member countries made up of 54 African countries and 26 non-African countries. The AfDB has Aaa ratings assigned by Moody’s, AAA rating assigned by Standard & Poor’s, AAA from Fitch Ratings and AAA from Japan Credit Rating Agency. For more information, visit www.afdb.org/en/

About Dai-ichi Life Insurance Company

Dai-ichi Life Insurance Company is the third-largest life insurer in Japan. Through its history of more than 110 years, Dai-ichi Life has faced a great number of changes in both the times and society. To practice their management philosophy of “Customer First,” which they have emphasized through all of the stages of their long history, they have been working to “change what needs to be changed” in response to changes, in addition to maintaining their tradition. The Group companies will contribute to comfortable lives with peace of mind and the

Development of local communities in their respective regions and countries, providing life insurance and related services by sharing the Group’s principles (Mission, Vision and Values).

Dai-ichi Life will continue to fulfill its social responsibilities as a responsible institutional investor by actively engaging in ESG investments that include providing funds to businesses and companies that deal will social challenges, while they secure investment returns through sophistication and diversification of investment methods.

About Deutsche Bank Group

Deutsche Bank provides commercial and investment banking, retail banking, transaction banking and asset and wealth management products and services to corporations, governments, institutional investors, small and medium-sized businesses, and private individuals. Deutsche Bank is Germany’s leading bank, with a strong position in Europe and a significant presence in the Americas and Asia Pacific.

Deutsche Bank Group in Japan offers a wide range of financial products and services to its Japanese and global clients through four main entities; Deutsche Securities Inc. Deutsche Bank AG, Tokyo Branch, Deutsche Trust Company Limited Japan, and Deutsche Asset Management (Japan) Limited. Our products and services meet the increasingly diverse and complex needs of its clients, by taking full advantage of its global network and depth of expertise.