The African Development Bank (AfDB) has launched an AUD 50 million 15-year Kangaroo Green Bond due March 2038 as part of its sustained initiatives towards the implementation of its Green Bond Framework aimed at supporting Africa countries’ transition to green growth.
The new issuance, which is the bank’s sophomore green bond in the Australian dollar market since the inaugural 15-year Kangaroo green bond was issued in 2016 and which marks an extension of the Bank’s existing Kangaroo curve, was arranged by RBC Capital Markets and sold to a single Japanese investor, Taiju Life Insurance Company.
According to the bank, the funds raised through this green bond transaction will support its efforts in the areas of climate change mitigation and adaptation to finance eligible green projects, including forestry conservation projects.
In spite of renewed global efforts toward climate change based on new and ambitious climate targets established at the 27th Conference of the Parties (COP27) through the United Nations Framework Convention on Climate Change (UNFCCC), experts believe that Africa needs to give more attention to and adopt proactive strategies in order to achieve the set targets for the continent.
The experts’ stance is hinged on the fact that Africa, with its unique biodiversity and ecosystems, including savannas, mountains, plateaus, deserts, and its variety of organisms and plants, is threatened by climate change unlike any other region.
According to experts, Japan’s announcement of the “Africa Green Growth Initiative” made at the 8th Tokyo International Conference on African Development (TICAD8) in August 2022 to promote and attract investments into sustainable green growth in Africa, is ample evidence of its recognition of the need for this transition.
In order to promote sustainable development in Africa, the bank’s Ten-Year Strategy focuses on two overarching objectives: to promote inclusive growth and to support African countries transition to green growth.
AfDB has contributed to improving the lives in Africa by providing better access to water, energy and food, enabling sustainable use of natural resources, and promoting innovations, employment and economic growth.
The launch of the AUD 50 million 15-year Kangaroo Green Bond is AfDB’s 2nd green bond was issued in 2023 across all currencies, following on from a successful SEK 1.5 billion 5-year Green Bond issued in the Swedish krone market in January.
