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The African Development Bank launches a dual tranche NOK 500 million 3-year Social Bond and SEK 1.25 billion 5-year Green Bond


On Thursday 4 April 2019, the African Development Bank successfully priced a dual tranche NOK 500 million 3-year fixed Social Bond and SEK 1.25 billion 5-year fixed Green Bond transaction. The three-year tranche is the very first Social Bond issued in the Norwegian market. It was also the first ever NOK transaction issued by the Bank and the third Social Bond issued under its Social Bond framework. 

By issuing Social Bonds to finance socio-economic development in its regional member countries, the Bank is advancing its mission and strategy to spur sustainable economic development and social progress in Africa. It is also capitalizing on its track record of financing projects with strong social impact on the African continent. Eligible projects to be financed with the proceeds of Social Bonds are expected to lead to poverty reduction and job creation, as well as inclusive growth across age, gender and geography, thus improving the quality of life for the people of Africa.

Building upon the Bank’s Ten-Year Strategy for 2013-2022, whose overarching objective is to promote inclusive and sustainable growth by supporting African countries’ transition to “green growth”, the Bank established a Green Bond framework in 2013 with the goal of supporting the Bank’s commitments towards climate change mitigation and adaptation.

The SEK tranche is the 8th Green Bond issued by the Bank under its Green Bond framework and the 4th in SEK benchmark format. This transaction illustrates the Bank’s consistent effort to commit to its role as one of the main actors of climate finance in relevant sectors such as renewable energy, energy efficiency, clean transportation, biosphere conservation and sustainable water & wastewater management.

The transaction for a dual tranche NOK Social Bond and SEK Green Bond was announced on Wednesday 3 April 2019 and books opened officially on Thursday 4 April at 10:00am CET for a NOK 500 million tranche, with a price guidance of NOK Mid swaps -17 basis points (bps) area and an SEK benchmark size tranche, with a price guidance of SEK Mid swaps flat area.

The strong interest in the SEK Green Bond tranche, illustrated by a very high quality order book in excess of SEK 1.5 billion, allowed the issuer to set the spread 1 bp inside price guidance with an issue size of SEK 1.25 billion. The order books closed at 2:30pm CET for a NOK 3-year Social Bond with a size of NOK 500 million at Mid swaps – 17 bps and an SEK 5-year Green Bond with a size of 1.25 billion at Mid swaps – 1 bp.

There was very strong support for the dual transaction from Socially Responsible Investors (SRI) dedicated portfolios but also from investors who integrate environmental, social and governance (ESG) considerations in their investment strategies. The success of the transaction is reflective of the Bank’s solid green and social frameworks and the high quality of its impact reporting.

Some of the SRI and ESG oriented investors who participated in the transaction were AMF, AP3, Dina Försäkringar, Handelsbanken Asset Management, LF Jönköping, MP Pensjon, Nordea Investment Management, SEB Investment Management, SPP Storebrand and The Church of Sweden.

Investor’s quotes

“Nordea Investment Management is proud to invest in the first ever Social Bond in the Norwegian market and by doing so we can support specific social projects that address the African Development Bank’s strategic goal of achieving inclusive growth for Africa. We hope the success of this transaction will encourage other issuers to tap the Norwegian market with Social Bonds in the future.” Torgeir Stensaker, Head of Fixed Income Norway, Nordea Investment Management

“We are proud to be part of this specific issuer’s Green Bond initiative, contributing to green development in Africa. In particular, we find it important to finance renewable energy, waste management, urban development and water supply on this rapidly growing continent.” SEB Investment Management, Fixed Income team

Issuer’s quote

“As a pioneering participant in the SRI market, the African Development Bank is delighted to have launched a dual tranche transaction incorporating the first ever Social Bond denominated in Norwegian Kroner, partnered with a Green Bond in Swedish Kroner. Both tranches were driven by strong Scandinavian demand, a region that has been a very strong supporter of the sustainable investment market. The Bank’s Social and Green Bond programmes allow the Bank to highlight its development mandate to the investor community and enable them to ensure that they too can play a significant part in improving the lives of the people of Africa.” Hassatou N’Sele, Treasurer of the African Development Bank Group

Lead Manager’s quote

“It is inspiring to observe how the African Development Bank sources global capital to finance, lead and develop a strong platform for inclusive and environmental growth across Africa. We know from many of our investors that the ability to participate in Africa through the Bank’s triple-A rating is highly appreciated and we look forward to many transactions like this.” Christopher Flensborg, Head of Climate & Sustainable Finance in Large Corporates & Financial Institutions, SEB

Final terms of the transaction


African Development Bank


Aaa/AAA/AAA (All Stable)

Tranche Size

NOK 500,000,000

SEK 1,250,000,000

Issue Date

4 April 2019

4 April 2019

Settlement Date

11 April 2019

11 April 2019

Maturity Date

11 April 2022

11 April 2024


1.5%, Annual, Act/Act

0.375%, Annual, 30/360

Reoffer Price



Reoffer Yield






Use of Proceeds

As per the issuer’s Social Bond Framework

As per the issuer’s Green Bond Framework


Issued off the Issuer’s Global Debt Issuance Facility


Euroclear / Clearstream


Luxembourg Stock Exchange / Luxembourg Green Exchange

Lead Manager


African Development Bank’s Social Bond framework:

African Development Bank’s Green Bond framework:

Distribution statistics



For further details, please contact the African Development Bank funding team:

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