The African Development Bank issues inaugural green bonds in the market for Norwegian kroner | African Development Bank

The African Development Bank, rated Aaa/AAA/AAA/AAA (Moody’s/S&P/Fitch/Japan Credit Rating, all stable), has issued a 5-year NOK 1 billion green bond due in March 2028.

The bond was issued on Thursday, March 2, and marks the first green bond issuance by the bank in the Norwegian kroner market. This follows successful green bond issues in US dollars (USD), Swedish kronor (SEK), Australian dollars (AUD), since the bank established its green bond framework in 2013, and three NOK social bonds issued in 2019 and 2021 .

The money raised through this transaction will be used to finance eligible green projects in line with the African Development Bank’s Green Bond program, which aims to support African countries’ transition to green growth. The proceeds from the bond will help build resilience to the adverse impacts of climate change, build sustainable infrastructure, develop ecosystems and promote efficient and sustainable use of natural resources such as water, a sector particularly vulnerable to climate change across the continent.

This transaction highlights the bank’s continued focus on delivering on its ten-year strategy, whose overarching goals are inclusive growth and transition to green growth. It also illustrates the bank’s consistent efforts to commit to its role as one of the key climate finance players in Africa, particularly in the sustainable water and wastewater management sector, which, as of December 31, 2022, accounts for 28% of represents the bank’s green pipeline. particularly relevant given the upcoming 2023 UN Water Conference in New York, which aims to draw the world’s attention to the topic of water and the critical role it plays in achieving the entire sustainable development agenda.

Commenting on the bond offering, Kristin Lien, Senior Portfolio Manager, Kommunalbanken said: “Kommunalbanken is pleased to support the African Development Bank’s first green bond in the Norwegian market. It represents a great alignment with both our own and AfDB’s objective to mobilize capital to finance the transition to a low-carbon, climate-resilient future. We hope that the success of this transaction will encourage other development finance institutions to raise more funding in the Norwegian green bond market in the future.”

Keith Werner, Division Manager, Capital Markets and Financial Operations, African Development Bank said: “As a pioneering participant in the ESG market, the African Development Bank is pleased to launch its inaugural green bond in the Norwegian market in partnership with SEB to support the deployment of support the bank to tackle the devastating impacts of climate change in Africa while increasing its investor reach in the Scandinavian market. These 15^e Green Bond, issued under the bank’s Green Bond framework, highlights the bank’s consistent investments in sectors such as renewable energy, energy efficiency, clean transportation, biosphere conservation, but in particular, as we enter the approaching the UN water conference, the increasingly important sector of sustainable water and wastewater management.”

“We are proud to support AfDB’s continued expansion into new areas of the green financial market and support the execution of their green growth strategy in Africa. Later this month at the UN water conference in New York we will be reminded of how water plays such a vital role in delivering on the sustainable development agenda so it’s a great opportunity to leverage AfDB’s funding in this sector which nearly a third of their green pipeline,” said Ben Powell, head of Sustainable Debt Capital Markets, SEB.

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