The African Development Bank (AfDB) has issued the first Light Up and Power Africa Bond for $90 million (JPY 10 billion) sold to the Dai-ichi Life Insurance Company, the sole investor in the transaction.
The multilateral development finance institution noted that the Bond supports its ambition to achieve an important goal of realising Africa’s energy potential and bridging the continent’s energy deficit.
According to the AfDB, 645 million Africans have no access to energy, adding that the electricity access rate for African countries is just over 40%, the lowest in the world.
However, the aspirational goal of the bank is to help the continent achieve universal electricity access by 2025 with a strong focus on encouraging clean and renewable energy solutions.
It noted that this will require generating 160GW of new capacity, 130 million new on-grid connections, 75 million new off-grid connections and providing 150 million households with access to clean cooking solutions.
As part of this effort, Kenya’s Last Mile Connectivity Programme II, an energy project that provides access to electricity in Kenya, aims to provide electricity to 1.5 million people mainly from low-income groups and micro-enterprises that improve living standards and support economic growth.
Light Up and Power Africa Bond
Hassatou N’Sele, Acting Vice President, Finance and Treasurer of the AfDB Group, commented: “Our mission is the sustainable development of Africa and our core priorities are the High 5s: ‘Light Up and Power Africa’; ‘Feed Africa’; ‘Industrialise Africa’; ‘Integrate Africa’ and ‘Improve the Quality of Life for the People of Africa’.
“We would like to thank Dai-ichi Life for their interest and investment in Light Up and Power Africa Bond. Their role in this transaction is helping towards our goal of attaining universal electricity access by 2025, with a strong focus on encouraging clean and renewable energy solutions.”
The AfDB assured that it will use its best efforts to direct an amount equal to the net proceeds of the issue of the notes to lending projects within the strategic Light Up and Power Africa priority, subject to and in accordance with the AfDB’s lending standards. Read more…
The proceeds of the notes will be included in the ordinary capital resources of the AfDB and will be used for the general operations of the Issuer in accordance with the Agreement Establishing the African Development Bank.
The Bond was offered to Dai-ichi Life in a private placement format with Deutsche Bank AG as the sole arranger of the bond.