African Development Bank issues world's biggest social bond in virus fight | Fin24
  • Covid-19 Money Hub

    The hub will help answer your business and money questions during the coronavirus crisis.

  • Coronavirus Funding

    Could a R100 billion social impact bond help fund SA's Covid-19 interventions?

  • Money Clinic

    I have invested R1m to be paid out monthly, I have not received any during Covid-19. What can I do?


African Development Bank issues world's biggest social bond in virus fight

Mar 28 2020 13:55
Prinesha Naidoo and Antony Sguazzin

The African Development Bank said it issued the world’s biggest social bond yet by selling $3 billion of notes to fight the impact of the coronavirus on the continent.

Africa’s biggest multilateral lender received $4.6 billion in bids for its Fight Covid-19 social bond, it said in a statement Friday. More than half of bids for the three-year bond, which will pay interest at a rate of 0.75%, was allocated to central banks and official institutions, the lender said.

The bond issuance, AfDB’s biggest yet in dollar terms, is the first of the bank’s measures in response to the virus that has has so far seen the confirmation of more than 3,000 infections across the continent. “We are here for Africa, and we will provide significant rapid support for countries,” AfDB President Akinwumi Adesina said in the statement.

The continent needs an immediate emergency economic stimulus of $100 billion to combat the impact of the coronavirus pandemic, according to the United Nations Economic Commission for Africa.

Banks involved with AfDB’s bond sale included Credit Agricole SA and Goldman Sachs Group Inc. At least 37% of the bonds were allocated to European institutions, 36% to U.S. and 17% to Asian investors, AfDB said.



Company Snapshot

Voting Booth

How has Covid-19 impacted your financial position?

Previous results · Suggest a vote