Report: African ESG Bonds Hit $4.4bn

The value of international loan securities issued by African entities to raise funds for investments complying with Environmental, Social, and Governance principles currently stands at $4.4bn in 2024.

An Ecofin Agency report on Monday noted that the value of ESG bonds between January and February 2024 had surpassed the $1.4bn raised in 2023.

The African Development Bank has been a vital player in the segment.

In the report, “With the support of the African Export-Import Bank as the lead arranger, BADEA has issued up to €500m. So far, this market momentum has benefited the French financial group BNP Paribas, which currently leads the ranking of arrangers for this type of bonds on the continent, with a 17.5 per cent market share. Following are the American institutions JPMorgan and Bank of America Securities."

ESG bonds continue to increase in Africa, in line with a booming global market.

According to figures and estimates from the rating agency Moody’s, the total value of emissions of this type is expected to reach $950bn in 2024.

It noted, “Several local markets are also developing, notably in sub-regions like the West African Monetary Union where the main agency in charge of managing the money market (UMOA-Titres) issued, at the end of 2023, the first ESG bonds in the sub-region."