African Development Bank Launches its Clean Energy Bond
The African Development Bank (AfDB), rated Aaa/AAA/AAA, announces today its inaugural Clean Energy bond. This bond, denominated in New Zealand dollars, will be offered to Japanese retail investors during the month of March. The issuance is arranged by Mizuho International plc and will be distributed by Mizuho Securities Co., Ltd.
In Africa, access to energy is critical for reducing poverty, and making the continent more competitive. Climate change and energy security are major concerns at the African Development Bank. As a result, the Bank has established a Clean Energy for Development Investment Framework, which underscores its increased support towards clean energy projects, and is a first step in addressing the need for greater energy access while considering the opportunities of shifting energy investments to favor low-carbon development paths.
The African Development Bank supports its African member countries efforts towards clean energy in three specific ways: First, by encouraging countries to mainstream clean energy options into national development plans and energy planning. Second, the Bank is promoting investment in clean energy, including wind-power, hydropower and thermal power, smoke-free stoves, low-light technologies, and extending, improving and subsidizing and connecting national power grids. Third, the Bank is working to boost energy access in Africa by using the huge energy potential of the continent and by addressing the need for a low-carbon economy.
This maiden AfDB Clean Energy bond will offer investors the opportunity to participate in clean energy solutions through a highly rated institution. The net proceeds of the issue will, on a best efforts basis, be used to finance a portfolio of clean energy projects.
The African Development Bank is a multilateral development Bank established to help reduce poverty, improve living conditions for Africans and mobilizes resources for the continent’s economic and social development. The Bank is owned by all the 53 countries of Africa and 24 countries across Europe, North and South America, the Middle East and Asia (including Japan).