Opec development fund raises US$1b with first bond

THE development fund of the Organization of the Petroleum Exporting Countries (Opec) has raised US$1 billion from the sale of its first bond.

With the money earmarked for projects on food security, healthcare, infrastructure, education, employment and renewable energy, the three-year bond will pay investors at an interest rate of 4.5 per cent.

It will also be classed as a sustainable-development bond. The label’s appeal has grown, as investors increasingly look to use their resources in more environmentally and socially beneficial ways.

The Opec Fund for International Development said central banks and other “official” institutions accounted for 62 per cent of the bond’s buyers, while banks made up 19 per cent. The rest was almost all accounted for by asset managers, as well as insurance and pension funds.

The fund said that, geographically, just over half of the buyers were from Europe, the Middle East and Africa. Buyers from the Asia-Pacific region made up 27 per cent, while those from North America accounted for 21 per cent. REUTERS