African Development Bank Issues AUD 50 Million 15-Year Kangaroo Green Bond Due March 2038 | African Development Bank

The African Development Bank, rated Aaa/AAA/AAA/AAA (Moody’s/S&P/Fitch/Japan Credit Rating, all stable) has successfully launched a AUD 50 million Kangaroo Green Bond with a maturity of 15 years due March 2038 launched. The new issue was arranged by RBC Capital Markets and sold to a single Japanese investor, Taiju Life Insurance Company. This is the second green bond issued by the African Development Bank in the Australian dollar market since the inaugural 15-year Kangaroo green bond was issued in 2016, and marks an extension of the bank’s existing Kangaroo curve.

The funds raised through this green bond transaction will support the bank’s climate change mitigation and adaptation efforts. Proceeds from the bond will fund eligible green projects, including forest conservation projects, aimed at supporting Africa’s transition to green growth in accordance with the AfDB Green Bond Framework.

Despite renewed global efforts on climate change, the new and ambitious climate goals set for the 27^e Conference of the Parties (COP27) through the United Nations Framework Convention on Climate Change (UNFCCC), Africa requires particular attention and a more focused response.

Africa, with its unique biodiversity and ecosystems, including savannas, mountains, plateaus, deserts and its variety of organisms and plants, is threatened by climate change like no other region. This has made the transition to green growth in Africa even more important and urgent.

The announcement by Japan of the “Africa Green Growth Initiative” to promote and attract investments in sustainable green growth in Africa is sufficient evidence of the recognition of the need for this transition. The announcement was made on the 8^e International Conference on African Development in Tokyo (TICAD8) in August 2022.

To promote sustainable development in Africa, the bank’s ten-year strategy focuses on two overarching objectives: promoting inclusive growth and supporting African countries in the transition to green growth. The Bank has helped improve lives in Africa by providing better access to water, energy and food, enabling sustainable use of natural resources and promoting innovation, employment and economic growth.

The transaction is the Bank’s 2^na green bond issued in 2023 in all currencies, following a successful SEK 1.5 billion 5-year green bond issued on the Swedish krona market in January.

Summary bond terms: