Sustainability bond of the year – supranational, sub-sovereign and agency (SSA) : BOAD
The successful €750 million ($890 million) 12-year inaugural sustainable bond issued by Banque Ouest Africaine de Développement (BOAD) represented BOAD’s inaugural EUR trade as well as the first sustainable bond from an African issuer.
This was a landmark transaction, not only for the West African development bank, but for the Sub-Saharan African region as a whole, and a testament to the West African Economic and Monetary Union (WAEMU) region’s continuing status as a rapidly developing region, as well as BOAD’s key role in fostering this growth.
Of BOAD’s win, an Environmental Finance Bond Awards judge said: “Marvellous to see this first sustainable bond from an African issuer, and great to see them doing the good work to help out across a broad region.”
Furthermore, BOAD has taken the initiative of engaging in a formalised corporate social responsibility (CSR) approach since 2018, with the ambition of creating sustainable value for the entire sub-region and has set up a CSR Policy. In its new Strategic Plan for 2021-2025 BOAD intends to become “the reference bank for a lasting impact on the integration and transformation of West Africa.”
The sustainable bond issuance attracted more than 260 investors across the world, including 40% from the UK. The issue is part of a Sustainability Bond Framework, calling on BOAD to finance projects with a high social and environmental impact. The proceeds will reinforce BOAD’s capacity to invest in priority sectors such as agriculture and food security, renewable energy, basic infrastructure, health, education and social housing.
Issuer: West African Development Bank
Size: €750 million ($890 million)
Use of Proceeds: Affordable basic infrastructure, affordable housing, clean transportation, climate change adaptation, green buildings, pollution prevention and control, renewable energy, socioeconomic advancement and empowerment, sustainable management of living natural resources
External Reviewer: Vigeo Eiris, , an affiliate of Moody’s
Lead Manager: HSBC, JP Morgan, Natixis
Other highlights/notable features: First sustainable bond from an African issuer
The West African Development Bank (BOAD) is the common development finance institution of the member countries of the West African Economic and Monetary Union (WAEMU). Established in 1973, its shareholder structure includes, as at present, the eight WAEMU member countries, their central bank (Central Bank of West African States (BCEAO)) and many international institutions and non-regional countries, including African Development Bank (AfDB), European Investment Bank (EIB), KfW, France, Belgium, China, India and Morocco. It is rated ‘Baa1’ with a stable outlook by Moody’s and ‘BBB’ with a stable outlook by Fitch.Its headquarters is based in Lomé, Togo. True to its purpose, BOAD plays a leading role in fostering economic and financial integration within WAEMU countries.
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