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AfDB launches record breaking $3 billion “Fight COVID-19” Social Bond
The African Development Bank (AfDB) has raised an exceptional $3 billion in a three-year bond to help alleviate the economic and social impact the Covid-19 pandemic will have on livelihoods and Africa’s economies.
The Fight Covid-19 Social bond, with a three-year maturity, garnered interest from central banks and official institutions, bank treasuries, and asset managers including Socially Responsible Investors, with bids exceeding $4.6 billion. This is the largest dollar denominated Social Bond ever launched in international capital markets to date, and the largest US Dollar benchmark ever issued by the Bank. It will pay an interest rate of 0.75%.
The African Development Bank Group is moving to provide flexible responses aimed at lessening the severe economic and social impact of this pandemic on its regional member countries and Africa’s private sector.
“These are critical times for Africa as it addresses the challenges resulting from the Coronavirus. The African Development Bank is taking bold measures to support African countries. This $3 billion Covid-19 bond issuance is the first part of our comprehensive response that will soon be announced. This is indeed the largest dollar social bond transaction to date in capital markets. We are here for Africa, and we will provide significant rapid support for countries,” said Dr. Akinwumi Adesina, President of the African Development Bank Group.
The order book for this record-breaking bond highlights the scale of investor support, which the African Development Bank enjoys, said the arrangers.
“As the Covid-19 outbreak is dangerously threatening Africa, the African Development Bank lives up to its huge responsibilities and deploys funds to assist and prepare the African population, through the financing of access to health and to all other essential goods, services and infrastructure,” said Tanguy Claquin, Head of Sustainable Banking, Crédit Agricole CIB.
Coronavirus cases were slow to arrive in Africa, but the virus is spreading quickly and has infected nearly 3,000 people across 45 countries, placing strain on already fragile health systems.
It is estimated that the continent will require many billions of dollars to cushion the impact of the disease as many countries scrambled contingency measures, including commercial lockdowns in desperate efforts to contain it. Globally, factories have been closed and workers sent home, disrupting supply chains, trade, travel, and driving many economies toward recession.
Commenting on the landmark transaction, George Sager, Executive Director, SSA Syndicate, Goldman Sachs said: “In a time of unprecedented market volatility, the African Development Bank has been able to brave the capital markets in order to secure invaluable funding to help the efforts of the African continent’s fight against Covid-19. Not only that, but in the process, delivering their largest ever USD benchmark. A truly remarkable outcome both in terms of its purpose but also in terms of a USD financing”.
The Bank established its Social Bond framework in 2017 and raised the equivalent of $2 billion through issuances denominated in Euro and Norwegian krone. In 2018 the Bank was designated by financial markets, ‘Second most impressive social or sustainability bond issuer” at the Global Capital SRI Awards.
“We are thankful for the exceptional level of interest the Fight Covid-19 Social Bond has raised across the world, as the African Development Bank moves towards lessening the social and economic impact of the pandemic on a continent already severely constrained. Our Social bond program enables us to highlight our strong development mandate to the investor community, allowing them to play a part in improving the lives of the people of Africa. This was an exceptional outcome for an exceptional cause,” said Hassatou Diop N’Sele, Treasurer, African Development Bank.
Fight Covid-19 was allocated to central banks and official institutions (53%), bank treasuries (27%) and asset managers (20%). Final bond distribution statistics were as follows: Europe (37%), Americas (36%), Asia (17%) Africa (8%,) and Middle-East (1%).
The Olugbon of Orile-Igbon and Vice Chairman of the Oyo State Council of Obas and Chiefs, Oba Francis Olushola Alao, alongside his wife, Olori Olushola Adedoyin Alao, has expressed deep sorrow over the sudden passing of Mrs. Abisola Kola-Daisi, daughter of the late Governor Abiola Ajimobi and Chief (Mrs.) Florence Ajimobi.
In a jointly signed condolence message, the royal couple described the news as heartbreaking, especially coming just five years after the demise of the former Governor of Oyo State, Senator Abiola Ajimobi.
They extended their sympathies to Mr. Idris Kolapo Kola-Daisi, Abisola’s husband, their children, as well as Chief Kola Daisi and the entire Kola-Daisi family, urging them to find strength in this difficult time.
“This tragic loss has brought sorrow to the hearts of friends, relations, and well-wishers of the esteemed Ajimobi and Kola-Daisi families. Bisola’s warm smile brightened the lives of those around her, and she carried herself with grace, nobility, and kindness,” the statement read.
Praying for divine comfort and fortitude for the bereaved families, the Olugbon and Olori noted that though Abisola’s life was brief, it was impactful and meaningful.
“We urge the family to take solace in the remarkable life she lived. A short but impactful life is truly valuable. May Almighty Allah grant her Aljanna Firdaus,” they added.
The royal couple also prayed that God would grant Chief (Mrs.) Ajimobi, her children, and the entire Kola-Daisi family the strength to bear the irreparable loss.
The Chairman of the House Committee on Federal Roads Maintenance Agency (FERMA), Engr. Aderemi Oseni has expressed deep sorrow over the passing of Mrs Bisola Kola-Daisi, daughter of the late former Governor of Oyo State, Senator Abiola Ajimobi.
Oseni, who represents Ibarapa East/Ido Federal Constituency, described Bisola’s death as a tragic loss not only to her family but also to the wider Oyo State community.
In a condolence message issued on Thursday by his media aide, Idowu Ayodele, and made available to journalists in Ibadan, the lawmaker sympathised with the Ajimobi and Kola-Daisi families, praying for divine strength and comfort in their time of grief.
“I am deeply saddened by the passing of Mrs Bisola Kola-Daisi. My heart goes out to the Ajimobi and Kola-Daisi families, especially, our late leader’s widow, Mrs. Florence Ajimobi during this painful period. May God grant them the fortitude to bear this irreplaceable loss,” he said.
The All Progressives Congress (APC) chieftain urged the late governor’s wife, Chief Florence Ajimobi and other members of the bereaved families to find solace in Bisola’s impactful life. He emphasised that, beyond being the daughter of a respected former governor, she distinguished herself as a businesswoman and philanthropist, leaving behind a remarkable legacy.
“Bisola was a woman of substance who made significant contributions to society. Her kindness, dedication, and commitment to excellence will always be remembered,” Oseni added.
The lawmaker also extended his condolences to Bisola’s husband, Mr Idris Kola-Daisi, acknowledging the immense pain he must be experiencing. He prayed for divine strength for him and the entire Kola-Daisi family as they navigate this difficult time.
Oseni further called on the public to keep the bereaved families in their thoughts and prayers. He prayed that Almighty God grants Bisola eternal rest and gives her loved ones the resilience to endure the painful loss.
. prays for progressives
The National Secretary of the South-West Agenda for Asiwaju (SWAGA’23), Barrister Bosun Oladele, has expressed deep sorrow over the passing of Bisola Kola-Daisi, daughter of the late former Governor of Oyo State, Senator Abiola Ajimobi.
Describing the news as shocking and heartbreaking, Oladele, a former House of Representatives member for Irepo/Oorelope/Olorunsogo Federal Constituency and a former Commissioner for Information, extended his sympathies to the bereaved family, particularly Mrs. Florence Ajimobi, widow of the late governor.
“God, the All-Knowing, is the only one who understands why this happened, and He alone can provide comfort to the family of our late leader and boss, His Excellency, Senator Abiola Ajimobi. I especially pray for strength and solace for Her Excellency, Chief (Mrs.) Florence Ajimobi, in this moment of grief,” he stated.
Oladele also commiserated with the Kola-Daisi family, particularly the deceased’s husband, Kolapo Kola-Daisi, while urging all Progressives in Oyo State to unite in prayers for the bereaved families and the wider political circle.
“I join all Progressives in Oyo State in expressing my heartfelt condolences to the Kola-Daisi and Ajimobi families. I pray for staying strength and divine comfort for all,” he said.
He further prayed against the recurrence of untimely deaths within the Progressives fold in the state, seeking divine intervention to stem the tide.
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