With the money earmarked for food security, healthcare, infrastructure, education, employment and renewable energy projects, the three-year bond which will pay investors an interest rate of 4.5 per cent, will also be classed as a ‘sustainable development’ bond.
The bond was priced using its Sustainable Development Goal bond framework on which Credit Agricole CIB acted as sole sustainability advisor. Attracting strong demand from investors globally, the 3-year fixed-rate sustainability bond raised US$1 billion, which will be used to finance or refinance key sustainable development projects that are aligned with the OPEC Fund’s multi-sectoral development mission and directly contribute to achieving the SDGs.
The OPEC Fund’s head of Funding, Martine Mills Jansen, said the bond pricing is a major milestone for the OPEC Fund and the culmination of several years of intensive work. “The success of our debut bond in the current market environment is a testament to the strength of our credit. We are pleased to join the community of multilateral development banks issuing in the capital markets.