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African Development Bank Launches New Clean Energy Bonds
The African Development Bank (AfDB) rated Aaa/AAA/AAA, announced today two new Clean Energy bonds. These bonds follow the successful first Clean Energy bond issued earlier in March this year for an amount of NZD 109 million.
The bonds, due November 2013 with one denominated in New Zealand dollar (NZD) and the other in Australian dollar (AUD), will be offered to Japanese retail investors during the month of May. Mizuho International plc is acting as sole lead manager and the two bonds will be distributed by Mizuho Securities Co., Ltd.
Mr. Pierre Van Peteghem, Treasurer of the Bank Group, said: “We are pleased to again offer investors the opportunity to support clean energy solutions in Africa – an area of focus for our operational activities.”
“The net proceeds of the issue will, on a best efforts basis, be used to finance the Bank’s rich and expanding portfolio of clean energy projects,” added Mrs. Hassatou N’Sele, Head of Funding.
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 developing its abundant, but untapped clean energy potentials 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, use of new-generation biofuels, 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 supporting the sustainable exploitation of the huge energy potential of the continent, while supporting the growth of a low-carbon economy.
Complementing its commitment to clean energy, the Bank is hosting a roundtable on the economics of climate adaptation in Africa in Tunis from April 27-28, 2010 in collaboration with partners such as the Observatory of Sahara and Sahel, the Stockholm Environment Institute and UNEP. The meeting aims at developing a common understanding of cost estimates of the impacts of climate change and the costs for adapting to these effects.
The African Development Bank is a multilateral development Bank established in 1964 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).