The African Development Bank launched an AUD155 million social bond
The African Development Bank has successfully launched an AUD155 million social bond that will mature in October 2032. The bond will fund the continent’s most pressing social development needs.
According to a press release on 29 April, the African Development Bank has successfully launched a A$155 million, 10.5-year Kangaroo Social Bond due in October 2032 to help finance some of the continent’s most pressing sustainable and social development needs.
This initiative was partly justified by the war between the Russian Federation and Ukraine, which has harmed food security in Africa (AfDB). It is well known that Russia and Ukraine are among the world’s largest producers of wheat and sunflower oil and that the war is driving up prices for an already “fragile” African economy.
“Africa is an importer of food from both Ukraine and Russia, especially wheat and maise, and the current geopolitical instability has worsened the food security situation on the continent. Combined with the rise in energy prices, this is especially distressing for the continent’s most vulnerable communities.” African Development Bank Group
The bank highlighted the fact that the proceeds of this bond will be used for investments in Africa with relatively high social returns, aimed at reducing poverty (SDG1), eradicating hunger (SDG2), ensuring good health and welfare (SDG3), quality education (SDG4) and supporting industry, innovation and infrastructure (SDG9).
“Proceeds from the Bank’s social bonds are allocated to eligible projects with significant social impact and outcomes, leading to poverty reduction and inclusive growth in Africa. This is expected to bring socio-economic development and empowerment, including solving food insecurity, improving access to basic infrastructure (electricity, water and sanitation, transportation), basic services (medical, education, vocational training), financial services, and job creation.” African Development Bank Group
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