The OPEC Fund for International Development has raised $ 1 billion by selling its first bond since it was created 50 years ago. The money is earmarked for green activities and will only be invested in non-member countries.
The money was raised last week after months of postponding due to the global upsurge of interest rates which were offset by inflation and the Russia-Ukraine war.
According to OPEC Fund’s Head of Funding, Martine Mills Jansen, this year has far more tame conditions in insuance prompting them to go the jackpot.
“The momentum was very strong. So it quickly became clear $1 billion was in our sights,” she said.
OPEC will be investing the money in green projects like food security, renewable energy, employment, healthcare, education and infrastructure.
One of the ‘sustainable development’ bond or ‘green bond’ fund conditions is that it only invests in non-member countries.
The green bond label is attributed to the success of the fund because of its appeal to investors who are increasing looking to put their resources into eco-friendly projects.
Jansen said that ‘central banks from the Middle East, Europe and Asia and other types of “official” institutions, including from the United States, accounted for 62% of the bond’s buyers.‘
‘Commercial banks made up another 19%, asset managers and insurance and pension funds accounted for almost all the rest. Geographically, 52% of the buyers were from the Europe, Middle East and Africa region, 27% from Asia-Pacific and 21% were from North America.‘
In the same time frame, Uganda has launched the first of four oil drilling rigs gearing to join the world’s oil players. By 2025, the country hopes to meet its target oil output.
Gabon is currently one of the non-OPEC African countries.