The African Development Bank (AfDB) has tapped the green bond market for the second time this year, after a SEK 1 billion ($153 million) issue was bought by Swedish investors.
The fixed-rate bond, which has a five-year maturity and was denominated in Swedish krona, was snapped up by 16 companies, including pension funds AP2 and AP3, Landstinget Vastmanland, SAAB Pensionsstiftelse, SEB, and Swenska Kyrkan.
SPP, a Swedish pensions and insurance provider owned by Storebrand, also invested in the new bond. The company was the sole purchaser of a SEK 1 billion floating-rate bond issued by the AfDB in February.
The AfDB raised $500 million from a green bond issued in October last year, which was oversubscribed by almost £50 million.
Pierre Van Peteghem, treasurer of the AfDB, said demand for the latest issue was also strong, highlighting "the important role capital market investors have in supporting us in fulfilling our development mandate in Africa".
All three issues are part of a decade-long Green Bond Framework, adopted by the bank in 2013 to fund initiatives including renewable energy programmes, energy efficient vehicles and waste management plants.
Kamal Grossard-Amin, director and head of Sovereigns, Supranationals and Agencies origination at Nordea Markets, which was the lead manager for the transaction, said: "It is another milestone for AfDB and the development of the green bond market. With its second Swedish krona benchmark issue within weeks, the African Development Bank has created a significant foorprint in the Nordic market."
Sophie Robinson-Tillett
