The OPEC Fund for International Development reported on Friday that it has raised one billion dollars by issuing its first bond in nearly 50 years of history.
The three-year bond will yield investors a return of 4.5 percent and will be labeled as a ‘sustainable development’ bond.
The money raised from its sale will be directed towards food security, healthcare, infrastructure, education, employment, and renewable energy projects, announced the OPEC Development Fund.
Such bonds are becoming increasingly attractive to investors seeking environmentally and socially responsible investment opportunities.
According to the OPEC Development Fund, 62 percent of the bonds were purchased by central banks and other ‘official’ institutions. Commercial banks bought 19 percent, while nearly all of the remaining portion went to asset managers, insurers, and pension funds.
Geographically, just over half of the buyers come from Europe, the Middle East, and Africa, 27 percent from Asia and the Pacific, and 21 percent from North America, the fund’s statement said.
The fund was established in 1976 and has so far allocated nearly 23 billion dollars for development projects in over 125 countries, according to its website.
