OPEC Fund Debuts US$1bn SDG Bond For Development Finance

Published on:
by KnowESG
tinywow Melanie-Grant 12173507

The OPEC Fund for International Development (OFID) is a development finance institution established by the member countries of the Organisation of the Petroleum Exporting Countries (OPEC). The institution recently raised $1 billion by issuing its first-ever bond, which is a debt security issued by a company or government to raise capital.

The bond is fixed-rate and has a 3-year maturity, with an interest rate of 4.5%. It was priced using a framework for Sustainable Development Goal (SDG) bonds and attracted strong demand from investors globally.

The funds will be used to finance or refinance sustainable development projects that align with the OPEC Fund's mission and contribute to achieving the SDGs. Credit Agricole CIB acted as the sole sustainability advisor for the bond.

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. This is an important step in the establishment of our borrowing programme, and we look forward to continuing our engagement with investors going forward,” Mills said.

For more sustainable finance news

Source: Leadership

Share:
esg
esg
esg
esg

Sustainable Finance Headlines

Ireland’s ISIF Puts €160M Toward Climate Solutions

Ireland’s ISIF Puts €160M Toward Climate Solutions

Sustainable Investment Boost: Ara Partners’ $800M Fund Tackles Industrial Emissions

Sustainable Investment Boost: Ara Partners’ $800M Fund Tackles Industrial Emissions

Bosqar Eyes €150M in Sustainability Bonds Amid ESG Push

Pioneer Secures $1.2 Billion for Sustainable Infrastructure Push

UK's RLAM Adopts SDR Focus Label for 8 Funds for ESG Transparency

Sri Lankan Stock Exchange Launches GSS+ Bonds Regulatory Framework

UBS ETFs Embrace ESG Principles in Major Rebranding Effort

Sustainability at the Core: Thailand and Luxembourg Strengthen Financial Cooperation

NYS Pension Commits Extra $2.4B for Sustainable Investments

Greece's Western Region to Get $6.4B for Green Energy Shift