ADB gets USD 600m in dual-tranche green bond sale

Author: 401(K) 2012 on Flickr, CC BY-SA 2.0

December 3 (Renewables Now) - The African Development Bank (ADB) has raised USD 600 million (EUR 528.3m) from selling fixed-rate and floating rate green bonds to address climate change issues across Africa.

The lender said on Friday it has offered USD 500 million in a fixed-rate three-year green bond tranche and a two-year secured overnight financing rate (SOFR)-linked tranche of USD 100 million. The transaction made it the first issuer bringing to the market a SOFR-linked green bond deal, it noted.

The USD-500-million offering was priced at mid-swaps (MS) flat, attracting the interest of “high quality green investors,” ending up in USD 590 million in subscriptions. The floating-rate bonds, meanwhile, were priced at SOFR plus 32 basis points. Books for both offerings were open on November 27 and closed a few hours later on the same day.

More than 40 investors took part in the two tranches of the transaction. In both of them, the bulk of subscriptions, about 61%, came from central banks and official institutions and some 24% were from asset managers. Among the investors are The City of Chicago Treasurer's office, the International Fund for Agricultural Development (IFAD) and asset manager BlackRock Inc (NYSE:BLK).

The placement was launched as part of ADB’s 2013-2022 strategy for supporting Africa’s green growth. It represents the seventh issuance under the lender's green bond framework.

(USD 1.0 = EUR 0.881)

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Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.

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