With the money earmarked for food security, healthcare, infrastructure, education, employment and renewable energy projects, the three-year bond which will pay investors an interest rate of 4.5 per cent, will also be classed as a ‘sustainable development’ bond.
LONDON: The OPEC Fund for International Development, a development institution established by theOrganization of the Petroleum Exporting Countriesnearly 50 years ago, has raised $1 billion by selling its first ever bond.
With the money earmarked for food security, healthcare, infrastructure, education, employment and renewable energy projects, the three-year bond which will pay investors an interest rate of 4.5 per cent, will also be classed as a ‘sustainable development’ bond.
It is a label that has a growing appeal for investors increasingly looking to use their resources in more environmentally and socially-beneficial ways.
TheOPEC Fundsaid central banks and other types of “official” institutions accounted for 62 per cent of the bond’s buyers. Banks made up 19 per cent, with asset managers and insurance and pension funds accounting for almost all the rest.
Geographically, it said that just over half of the buyers were from the Europe, Middle East and Africa region, 27 per cent from Asia-Pacific and 21 per cent from North America.
