EHIME ALEX, Lagos
Nasdaq has welcomed the inclusion of the African Development Bank, one of the world’s largest issuers of social bonds, in the Nasdaq Sustainable Bond Network (NSBN).
The announcement came on Wednesday and was contained in a release by APO Group made available to NATIONAL ACCORD.
The NSBN is a global and publicly available platform designed to improve transparency in the market for green, social and sustainability bonds.
Ten Bank bonds were said to have been added to the platform, including its landmark $3 billion Fight COVID-19 Social Bond launched in March 2020, the largest Social Bond ever launched at the time in international capital markets.
Noting that fight COVID-19 remains today the largest dollar-denominated Social Bond, the bond is aimed to help alleviate the economic and social impact of the pandemic on livelihoods and Africa’s economies.
According to the statement, by joining the Nasdaq Sustainable Bond Network, socially responsible issuers are provided a unique opportunity to bring attention to their concrete actions in terms of financing climate change and green growth.
“Nasdaq welcomes the inclusion of the African Development Bank on our Nasdaq Sustainable Bond Network especially with its Fight Covid-19 Social Bond, launched to alleviate the impact of the pandemic on African economies and livelihoods,” said Ann-Charlotte Eliasson, VP, Head of EU Bond Listings and Sustainable Debt.
“We are proud to offer visibility to an issuer with such a strong social mandate, which the world needs more than ever, especially in these challenging times,” it stated.
Since the launch of Nasdaq Sustainable Bond Network in December 2019, more than 40 issuers from 13 countries have added over 4,000 bonds to the platform, including the Nordic Investment Bank, HSBC and Fannie Mae.
“The Nasdaq Sustainable Bond platform allows us to showcase our work in combating poverty and in helping move the African continent forward. Our Fight Covid-19 social bond is about saving lives and livelihoods,” Hassatou Diop N’Sele, Treasurer of the AfDB, was quoted.
In a release on its official website, Ann-Charlotte Eliasson, Head of European Debt Listings and Sustainable Bonds at Nasdaq was quoted saying: “With the outbreak of the Covid-19 pandemic, providing visibility for issuers looking to raise funds to mitigate the effects has become even more important, and we believe the Nasdaq Sustainable Bond Network to provide valuable support here.”
“We are glad to see the interest for the platform continue to grow among both issuers and investors and look forward to keep expanding the offering with new functionality in the near future.”
Also, Tom Ceusters, IFC Director, Treasury Market Operations said in the release: “Social bonds offer an avenue for underserved communities in emerging markets to access vital capital for healthcare and sustaining jobs, women and small business owners, and economic recovery.”
“Amid the current crisis and as investor demand for impact beyond yield rises, IFC is expanding its social bonds program. We are very proud to join Nasdaq’s Sustainable Bond Network.”
Meanwhile, the AfDB established its Social Bond framework in 2017 and has raised the equivalent of $5.5 billion through five transactions supporting 89 eligible social projects in 28 African countries as of December 31, 2019.
In 2018, the Bank was designated “Second most impressive social or sustainability bond issuer” at the Global Capital SRI Awards and the Bank’s NOK 1 billion 3-year Social Bond issued in 2019 was awarded “Social Bond of the Year” by Environmental Finance.