OPEC Fund raises $1bn via bond issue

The OPEC Fund for International Development priced its inaugural benchmark bond issue in the capital markets last week. The bond was priced using its Sustainable Development Goal (SDG) bond framework on which Credit Agricole CIB acted as sole sustainability advisor.

Attracting strong demand from investors globally, the three-year fixed-rate sustainability bond raised Us$1bn, 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 bond attracted very broad interest with 52 per cent of investors coming from Europe, Middle East and Africa, 27 per cent from Asia-pacific and 21 per cent from North America. In terms of investor type, central banks and official institutions accounted for 62 per cent, banks 19 per cent, asset managers 9 per cent and insurance and pension funds for 8 per cent.

Dr Abdulhamid Alkhalifa, OPEC Fund's director-general, said, “The robust demand for our inaugural benchmark is testament to the confidence that investors have in the OPEC Fund and our long-standing development-focused mandate. It also confirms the appetite for sustainable investments globally. At a time when there is an increasing need for development finance, the OPEC Fund is proud to have achieved this milestone. It will allow us to mobilise additional funds in support of our partner countries. The OPEC Fund has a 47-year track-record in delivering successful development outcomes and the additional funds will enable us to further deepen our impact.”

The OPEC Fund is financing development projects in lowand middle-income countries in line with its South-south cooperation mandate.