JOHANNESBURG - The African Development Bank said it had received an award for its successful one billion Norwegian krone social bond issued in 2019.
The award was presented by an independent panel comprising 30 of the world’s largest eco-conscious, social and sustainability bond investors.
Issued last April, it was the first-ever social bond to be launched in the Norwegian market.
"This NOK ( Norwegian krone) issue reinforces the bank’s "High 5" operational focus which is aligned with the (United Nations) sustainable development goals," AfDB acting senior vice president Bajabulile Tshabalala said.
"Our social bond framework allows us to attract investors whose interests are aligned with those of our development mandate."
The bond was part of a dual-tranche social bond and green bond placed in Norway and Sweden which drew interest from investors that strongly weight environmental, social and governance considerations in their strategies.
"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," said Christopher Flensborg, head of climate and sustainable finance at Swedish financial group Skandinaviska Enskilda Banken.
The proceeds from the bond are being directed towards poverty reduction, job creation and inclusive growth.
Since 2017, the AfDB has launched nearly $5 billion worth of such instruments denominated in United States dollars, euros and Norwegian krone and in 2018 the institution was recognised as the second most impressive social or sustainability issuer at the Global Capital Socially Responsible Investments awards.
The latest award comes after the bank said last week it had raised a record $3 billion from another social bond to fund public and private efforts towards tackling the Covid-19 pandemic in Africa. The bond is the largest social bond ever issued in capital markets.
The instrument, with a three-year maturity, garnered interest from central banks and official institutions, bank treasuries and asset managers, with bids exceeding $4.6 billion.