By Asmau Ahmad
The African Development Bank (AfDB), has issued a 100-million-dollar seven-year “Feed Africa” theme to be paid by September 2029.
This is contained in a statement issued on the website of the AfDB on Thursday.
The bond was issued on September 14. The new issuance was arranged by Citigroup Global Markets Limited and sold in a Private Placement format to a single Japanese investor, Norinchukin Bank, a supporter of Agricultural, Fishery and Forestry industries.
Through this investment in the bank’s “Feed Africa” theme bond, the investor aims to support the AfDB’s initiatives and contribute to the increase in food production in Africa.
According to the statement, since 2015, AfDB has issued a certain number of theme bonds linked to its five strategic operational priorities known as the “High 5s”.
The bonds issued are for the purpose of financing projects under each of the High 5 areas.
The “Feed Africa” bond is intended to support the “Feed Africa” High 5.
The bank would use its best efforts to direct an amount equal to the net proceeds of the issue of the notes to lending projects.
The projects aim to advance the “Feed Africa” strategic priority, subject to and in accordance with the bank’s lending standards.
Under its Feed Africa strategy, the AfDB is working to reduce poverty, end hunger and malnutrition, and make Africa a net food exporter.
The bank would also move Africa to the top of export-oriented value chains where it has a comparative advantage.
Feed Africa’s overall goal is to make Africa a net food exporter by 2025.
