AfDB new bond to finance clean energy projects in Africa

May 10, 2010 · 0 comments

The African Development Bank (AfDB) second clean energy bonds will finance its expanding portfolio of clean energy projects in the continent.

The bonds that are due in November 2013 with one denominated in New Zealand dollars and the other in Australian dollars, will be offered to Japanese retail investors starting May.

Mizuho International Plc is acting as sole lead manager while distribution will be done by Mizuho Securities Co. Ltd.

AfDB’s first successful clean energy bond was issued in March for $78 million.

According to AfDB’s Group Treasurer, Pierre Van Peteghem, the bank is pleased to offer investors the opportunity to support clean energy solutions in Africa again, which is a major area of focus in the bank’s operational activities.

Access to energy in Africa is critical for reducing poverty, and making the continent more competitive.
AfDB management said that climate change and energy security are major concerns at the bank, a multilateral finance institution that promotes economic and social projects in the Asia-Pacific region.

As a result, the Bank has established a Clean Energy for Development Investment Framework, which underscores its increased support towards clean energy projects.

This is the first step in addressing the need for greater energy access while considering the opportunities of shifting energy investments to favour low-carbon development paths.

AfDB supports its African member countries efforts towards developing its abundant, but untapped clean energy potential in three ways: First, by encouraging countries to mainstream clean energy options into national development plans and energy planning.

Second, the Bank is promoting investment in clean energy, including wind-power, hydropower and thermal power, use of new-generation bio-fuels, smoke-free stoves, low-light technologies, and extending, improving and subsidizing and connecting national power grids.

Third, AfDB is working to boost energy access in Africa by supporting the sustainable exploitation of the huge potential in the continent, while supporting the growth of a low-carbon economy.

The AfDB is a multilateral development bank established in 1964 to help reduce poverty, improve living conditions and mobilises resources for the continent’s economic and social development.

Source – The East African

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